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Paypal is an excellent service owned by Ebay. So I believe they have Ebay's best interest at heart and not necessarily yours. They will try and encourage you to use a draft from you bank account. they toot how safe and protected you are when doing so.
I say use a credit card thru Paypal. I trust my credit cards ability to refund me for non=delivered items quickly. With paypal I have seen it take months to arbitrate before finally getting a refund.