There are a number of things I do to protect myself. The first thing I do is check the seller's feedback rating. I NEVER do business with anyone who has less than 25 transactions and a feedback rating lower than 99%. Second, I ALWAYS pay for my purchases via PayPal. If a seller won't accept PayPal, I won't do business with them. Third, I NEVER conduct side transactions unless I'm the seller. And fourth, I ALWAYS use a credit card when making PayPal payments. It provides an additional layer of protection against unscrupulous sellers.

One other precaution I take is I NEVER keep a cash balance in my PayPal account. Anytime I receive funds, I transfer them immediately to my bank account. And I NEVER ship anything I sell on eBay until the funds actually appear in my bank account. PayPal provides an indispensable service. But I trust PayPal about as far as I can throw them.

Using these precautions, I have never been burned in an eBay transaction acting as either buyer or seller.