>>Some users swear by it because they don't have to share any sensitive credit card information (including CVV coddes) with the merchant.

I tend to be one of those .. Dispute resolution with Paypal is a much better experience as compared to dealing with, say Bank of America ... I was lucky to have had my paypal account on itunes when I had some fraudulent purchases .. No long claims process as with a bank .. The investigation and the matter was settled within 3-4 days ..

Now I've read about paypal arbitrarily stopping services without any warnings but other banks can be the same..