The buyer (person sending money) never pays a fee. The seller (person recieving funds) pays a fee - usually around 3%, depending on what type of account they have. I use paypal frequently (sending and recieving $), and I find it to be VERY convenient. I've only had to do a chargeback twice, and it was very easy. As long as you do it within 30 days, you have an excellent chance of retreiving your lost funds. They also keep track of sellers with excessive chargebacks, so if someone wants to continue to use paypal, they will probably try to be accomodating (and I do mean PROBABLY..there are always exceptions!) But overall I find it very easy and secure to use paypal.