I have been with paypal for 10+ years - way back to the just getting to know ebay days. Anyway I`ve never had a bad experience with paypal. I have only had bad experiences with scammers.
I have however had a terrible experience with a true merchant account. they were always adding on extra fees, i had to check each statement with an eagles eye, and talk about no customer service - i had to talk to three to five different people each time i had an issue come up to try and get a problem solved. (I don`t feel its appropriate to post it here but email me if you`d like to know what company I think you should stay away from.)
I run a very small business, its just me, and for me and other micro-businesses, paypal is hard to beat. i have no monthly recurring fees. i can use a debit card to make withdrawals plus multiple other options to get money when i need it, and they have a competitive money back rate on their debit cards and money market accounts.
We all need to face it that we are in an inperfect world and when it comes to money - is your money truly safe at even the hometown bank down the corner. Scammers are out there and if they target you - you are going to have a hassle with whatever bank, merchant account, or online payment system you use.
Just my two cents...