This is a lie. First PayPal makes it impossible for most people to qualify for the "buyer protection." It is a bait and switch routine. They advertise a great program, then make it impossible to qualify for.
Second, PayPal says in its User Agreement "We reimburse Users for losses only to the extent we are able to recover the funds from sellers."
Yup, even if you are somehow able to qualify for the buyer "protection," it is almost without meaning. PayPal says their ability to offer them any kind of protection is only to the extent that PayPal can get the money back from the seller! The seller drains his account, no money for the buyer. And no money from PayPal to the buyer! Sound "excellent" to you?
There's more: PayPal, again if you qualify for "top tier" coverage, covers your losses up to $2,000 (only with eBay transactions). If you manage to qualify for the "basic tier" coverage, you only get covered for up to $200 (on eBay and qualified items purchased outside of eBay).
There's other stuff PayPal won't cover either: "These programs only cover payments for tangible, physical goods. All other payments, such as payments for intangibles, services, airline flight tickets, or licenses and other access to digital content are not covered by any Buyer Protection Program that we offer."
What is funny about that is this: In other advertising PayPal claims its service is PERFECT to buy and sell non-tangible services! PayPal markets its service for all service related industries (like web design, legal, airline, tickets, etc) -- with the promise of PayPal's "excellent" buyer and seller protection. Bullshit PayPal.
It doesn't really matter whether I have used PayPal or not. As far as credibility goes, you are claiming that you had success with PayPal. Well good for you, but as far as I am concerned many more people have shared their “screwed by PayPal” story on the Internet. This would at least suggest that while some people like you are happy with Paypal, many more are displeased with what they have to offer. Oh let’s not forget the class-action lawsuits against PayPal. Based on that, I pretty much made up my mind that I won’t be doing business with PayPal.