My brother does quite a business on ebay with his sports autographs. He uses Paypal with both Ebay and his storefront ( http://www.poppel.com - free plug for Eric). The commerce engine will connect directly to Paypal as does other chip sites like Pete R's and Josh S's).

If you are not a premier member its a great way to buy and sell smaller items (there are limits to the number of payments you can send/receive). If you are its seems to work pretty well (you receive the money in and have it deposited into your bank account).

Way back when it first started people were concerned that the company was not backed by a bank or FDIC insurance, or even a large mutual fund company. So what was keeping them from closing up shop like every 3rd or 4th .COM in 2000-2001 (and taking all the money in your online account with them). It didn't happen, they are a good viable company (and have recently been acquired by Ebay).

Like Jason, if I sell something via an auction and the buyer pays via Paypal I usually end up keeping it as a balance and find a nice chip that I want (although that is getting harder and harder). Not financially responsible - but what the hell. You only go around one or twice.

I have used another service (C2IT). Similar to Paypal except it is run Citibank. Good service, reasonable fees, good company behind them but being second or third on the market didnt work for them.