Even the Craigslist help pages indicate payment and item delivery should be made face-to-face. Craigslist isn’t really intended to sell things long distance. That’s what ebay is for. I’ve bought and sold on craiglist and ebay, and I’ve found that PayPal works well for ebay transactions if one uses proper caution. However, it never even occurred to me to make a craigslist transaction with anything other than cash.
if you demand cash, you should also invest in a counterfeit marker like most stores use.