I personal wont have anything to do with them.
They are pressently in the middle of who knows how many class action suites, on top of which it seems they are being investigated by the fbi and some other groups for stuff like fraud, and iligally acting like a bank without following the rule(ok so they dont call it that but I cant remember what it was called)
more info at www.nopaypal.com & paypalwarning.com

2CO aside, I think PayPal is a good option. However, it should be a secondary option and not a primary option.

Better to use 2c. I hate PayPal Chargebacks.

The way I see it, PayPal is a must in terms of a payment solution, although it should not be the only form of payment. Because of its popularity, it will definately draw in customers that may not feel comfortable giving you their credit card number, and would prefer to leave it up to PayPal.

Paypal is the best payment system to receive custom payment.

I have a merchant account, but if I did not I would use 2co. Customers that aren't members of paypal are not for a reason. My business has picked up considerably since I got rid of paypal.

I will second that... i have been working with paypal for about 3 years now, never had a single problem..

Out of 3 years working with PayPal, we have only ever received 3 fraud orders during the over 5000 transactions put through our account. Now that is some impressive fraud screening!

Compare that to 2CO where fraud is rampant. We had a 2CO account for a month - what a horrible experience. Chargebacks, fraud orders, and problems transfering money to our bank account - The charge for attmepting to transfer with incorrect bank account information is rediculous - especially when the problem is at 2CO and not the bank information. We lost $200 in fees trying to move our money over - what a nightmare.

I must stress however, there is no substitute to having a merchant account. Third Party Gateways are fine but you will never bring in the same numbers you would have if you had a merchant account. Just my opinion based on sales.

PayPal is yet another great payment gateway to offer as many people do not like to enter credit card numbers into websites which are not digitally signed, etc. So you can say PayPal can help you a lot to make your business grow. Also I would recommend you to have an alternative like 2CheckOut.com as some people do not like or trust PayPal.

That is true. There were some rumors that they were used in money laundering operations, for terrorists and all of that. Maybe it's an exaggeration, but maybe it's true. Paypal likes to do a lot of things without playing by the rules, and that eventually will have repercussions on the end-user.
Another interesting URL is www.paypalsucks.com, and since we're also talking about 2checkout, which is quite ok, better than paypal anyway, I've also found this ikobo company, which seems quite interesting, at least on paper it does.
P.S. Chargebacks really do suck!

PayPal is great, but I see a few stitches down the line:

• Fraud - PayPal fraud is one of the biggest issues they have, not only do people become ripped off by so called "legitimate" clients, but emails from outsider parties are going around asking you to re-verify your account (i.e. put in your CC details) - If you get one of these contact paypal right away, it may be a scam.

• Fees on transfers - are relatively high

• The time it takes to transfer any amount to a UK bank account is 5-7 days, and sometimes longer - this is truly not very good.

Paypal is great the only problem with it is the fraudulant charge backs that clients do when they think it is funny to fraud you after taking your services.

Had a couple of these before now and really their is nothing you can do besides sit their and argue with Paypal.

Anyway thats my thoughs.

One of my fraudulent chargebacks was for over $800 USD - Really made me lose faith in PayPal!

Paypal is good I have heard many stories but never encountered any myself. Its fast and easy to use....the only downside is the transaction fees on business accounts which tend to be abit of a pain.

Yeah, keep saying that until something bad happens to you. Don't get me wrong, I don't want something to happen to you, it's just that whenever paypal is involved, things aren't so predictable.
Anyway, I've mentioned before that I was considering ikobo. I've signed up a while ago and until now it seems like it's a good alternative to paypal, especially since they have much larger coverage than that of paypal. I'll let you know how things are going…