The holding of payments I only knew about secondhand but it happened to quite a few people I knew. Almost all of it was fishing tackle, most of it in the $200.00/$300.00 range.
I received about 1500 PP payments over 6 years. I preferred USPS money orders.
Were you doing a lot of international transactions? The rate for those is a bit higher, but here is PayPal's current fee schedule:
| Purchase payments received (monthly) | Fee per transaction |
| $0.00 USD - $3,000.00 USD | 2.9% + $0.30 USD |
| $3,000.01 USD - $10,000.00 USD | 2.5% + $0.30 USD |
| $10,000.01 USD - $100,000.00 USD | 2.2% + $0.30 USD |
| > $100,000.00 USD | 1.9% + $0.30 USD |