So luckily I've never had a run-in with paypal, but they've been getting less and less attractive. Luckily, there will soon be some competition. 'GreenZap' (what a dumb name) is set to start operations June 15th. If you pre-register, they'll give you $25 (and me $5). I figure even if they end up sucking, $25 is $25; though I'll probably avoid linking to a bank account until they have a track record.
Edit: Well, it didn't take too long to find the first issue. When you register using a promo code, the owner of that promo code gets an email. An email with your city, state, email address and phone number.