I lost ~$110 due to paypal fraud.
Luckily, the vendor sent me the tea anyway and absorbed the loss, but paypal's handling of the dispute was aggravating and not customer/client oriented. If it had been a credit/debit card, a simple charge-back would have solved the problem.
All payment methods have some risk to them, but how a service manages that risk and corrects problems is important. Paypal fails on this, and I only use them when a vendor will take no other method of payment. Even then, a vendor I don't know or trust who only takes paypal will not likely receive my business.