Isn't the max loss there rather tiny? Especially if you have overdraft off on the paypal bank account. You can disconnect the account if something happens and there are fees accruing.

Edit: I'm replying to a really low odds scenario, where:

1. You auto sweep all money out of paypal

2. You regularly empty the checking account it sends to

You have at risk maybe $1000-$2000 in the chequing + less than $100 in fees.

For something vanishingly unlikely to happen. The risk seems rather low compared to the exposure.

I mostly use stripe and have PayPal as a backup. Never had a problem with either, and if I did have a problem with one the amounts are fairly low. (Probably more of an amount risk with stripe as they take longer to sweep out the money. But I don't think they freeze as often)