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I've used Paypal for years with a linked credit card. Never had a problem.
Paypal have their own customer protection policies and processes. But you can add another layer of personal protection on top of that;
My advice is to link a credit card and not deposit funds to a trust account. Then if there is ever an issue you simply instruct your card issuer (Bank) to do a charge back and they will do it without hesitation. You can't do a chargeback on deposited funds or back account withdrawals.
The other thing I will point out is that by using a payment processor like PayPal, the retailer never gets your card details. Personally, given a choice, I always use PayPal in lieu of providing card details to a retailer.
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