You might have to institute a minimum donation amount, and link to a page explaining why. And I honestly don't think it will matter much if the minimum donation has to be $3 instead of $1 due to fraudulent charges & fees
Better yet - disable credit card donations and stick to just PayPal accounts. A set of people who are willing to donate, have a credit card, but not a PP account is vanishingly small.
The day would be rather bleak if paypal had monopoly on who can donate to whom. I would on principle never donate to such project, and hope that they would at least consider opening up an alternative method like bank transfer or bitcoins.
[Citation needed]
I've had nothing but trouble with PayPal. I give them another shot every year or three, but invariably have to jump through piles of hoops to make a first payment, if I'm successful at all. So generally end up using a card directly. Because PayPal is terrible.
It's the price of operation on the internet. There are more avenues of abuse and so they have to be very strict. This resulted in a lot of frustrations from the users, but there is nobody doing better.
I'm not sure that is true. I suspect it has a lot to do with the market. Anywhere that ebay dominates the online auction / trading business - maybe. Elsewhere, (such as NZ where ebay use is dwarfed by trademe) paypal account holders won't be nearly as common.