Paypal will do a "best efforts" to recover any fraudulent activity; but, if they can't your stuck; they will charge your paypal account; then refer it to a collection agency if you ignore them.

Paying with Paypal via a credit card is fine as most cc have a zero loss policy on internet charges; so you just report fraud to your cc company and they will reverse it, so you can tell paypal to drop dead if they don't recover.

For payments; postal money order are the only way; cash at postal window THEN hand over package. Zero cost. ZERO losses.