As with any online funds management service you're going to encounter a few downsides. I agree, PayPal is a great alternative to money orders, company/personal checks, and bank transfers but bare in mind that you jeopardize your security when you opt for convenience. I've been using PayPal for the past 4 years and just recently encountered my first drawback (lost 250.00 because of a fraudulent payment). PayPal makes it possible for web hosts, graphic/web developers, merchants and basically anyone looking to exchange money to cater to a wide audience and do so conveniently.

Here are some cons I've noted from my experiences with PayPal.


- The PayPal Customer Service/Resolution Team is horrible and their business practices are unethical.

- It's like a monkey race with PayPal when you're trying to get your money back.

- Their application process is not stringent enough. Security could stand to be tighter and the so called investigations PayPal makes on fraudulent accounts should be more thorough.



I just found a good link that explains it better than I ever could:
click here

I will admit though that without PayPal, I wouldn't be able to earn the kind of money that I do with web hosting and web development because people simply hate to be inconvenienced with checks, money orders, etc. Payment with PayPal is instant and can quickly be refunded if need be.

It's a win/loose deal with PayPal.