I haven't experienced dollar limits with PayPal. One of my dealers told me that, using their "friends and family" feature too often, he was nailed by PayPal (not the government), as they caught on to him being a dealer, so I started sending him personal checks.
I have had two potentially bad experiences, someone local contacts me as a result of an ad I've placed on Audiogon, but don't make a formal offer, say they will pay cash and do "local pickup". One guy was a good way into the hour+ drive to my home when he called again to tell me he was offering me $600 less than the price we agreed upon ("no deal"). Another clown actually had a similar conversation when he arrived in my driveway! So, when I sell on Audiogon, I don't do "cash, local pick up" anymore. Once someone makes and offer and pays using PayPal, I'm protected and the buyer is protected as well.
I have had two potentially bad experiences, someone local contacts me as a result of an ad I've placed on Audiogon, but don't make a formal offer, say they will pay cash and do "local pickup". One guy was a good way into the hour+ drive to my home when he called again to tell me he was offering me $600 less than the price we agreed upon ("no deal"). Another clown actually had a similar conversation when he arrived in my driveway! So, when I sell on Audiogon, I don't do "cash, local pick up" anymore. Once someone makes and offer and pays using PayPal, I'm protected and the buyer is protected as well.