the only times I have had a problem with ebay was when I bought a model from a guy in canada and canada post squashed the package surprisingly the model survives but the .049 engine was a loss the guy never returned my enquiries about any insurance that was suposedly paid for,stilll have the kit.

and a model that was sold by a seller that didn't know what he had the description was for a new in box kit and all I got was a set of plans and some scrap balsa, he gave me a full refund and even after I told him I would send him the box back at my expense, he said just keep it I gave him a ++ feedback, otherwise my transactions have been smooth and hassle free.

as for pay pal, there is no required extra information you need to provide to them for transactions, that you would need to give for a ordinary credit card,or checking account from a bank.
I prefer to use it for the buyer protection and the ability to pay quickly which most of the sellers apreciated from the feedback I have recieved,I have also used the service here on RCU to sell some items without any trouble what so ever.

I know some people don't trust any financial institutions and still stuff there matresses with cash but so far PP has worked out for my selling and buying activities.