PayPal also doesn't sufficiently protect against incompetent sellers. I had a shipment get stolen once, I think it was shipped UPS. UPS wouldn't let me start a claim, only the shipper could do so. The seller wouldn't respond to my communications. When I asked PayPal to refund my money, the seller finally responded saying "here's evidence that I shipped it, I'm under no obligation to start a claim with UPS" and PayPal agreed with the seller. What should have happened was the seller should have taken 5 minutes to start a claim, gotten back the value of the object from UPS, and refunded my money. I'm just shocked that (a) the seller didn't want to take the five minutes to be a decent human being, and (b) that PayPal supported them.

I don't use PayPal to send money any more, though I'm willing to receive money that way (since there's no other way for me to receive credit card money). I don't use UPS to ship (although it's actually the receiving from them that's problematic, I still don't want to give them my money).