People get upset about the way Paypal deals with fraud because they lose a lot of money to it and take extra precautions. While that is reasonable, they do a lot of things other people (and I) find to be ineffective and hurtful to users. For example, Paypal escapes banking regulation in the US due to loopholes. If you have your account locked for any reason they will hold your money for 6 months without interest. No exceptions. Their customer service sucks, it's nearly impossible to get ahold of a human and they'll require documentation they have no legal right to in order to unlock your account (example: complete bank statements: http://openca.mp/blog/paypal-hates-conferences-especially-op...). I believe the world without Paypal would certainly be a better place. I emphasize with their difficult issue of preventing fraud but that doesn't make their actions ok.

Edit: In response to following comments, I amended above where it made it sound like Paypal escaped a banking regulation to withhold your money. My issue is that they use the 180 hold on account that haven't been locked for good reason.

Some people may be able to get customer service. They offer different kinds of accounts and maybe with a merchant account through Paypal or a business account. I've personally found Paypal to be lacking when trying to get in touch with them. I had someone attempt to scam me out of money by doing a chargeback for an eBay product I shipped via USPS (no tracking number). When they opened a hold on the account because the person said they didn't receive the item, Paypal had a field where I could put the tracking number. Having no tracking number, I tried to attach a note saying I shipped via USPS. I tried contacting support and no one ever answered. I offered to sign something making my personally liable if there was a lawsuit (as I had shipped the item). After all of that, their response was to refund the money so I was out the product and money, and close my account.

Don't act like I'm the only person who's got problems with Paypal. If you have had only great experiences with them, more power to you, but there's many more people who have been wrong by Paypal than other money processors:

"paypal sucks" About 65,800 results

"visa sucks" About 3,970 results

"mastercard sucks" About 1,760 results

If they had a true competitor, they'd be struggling to stay in business.