They enter their cc# into paypals site to send you money.
I have premier, fees kill me. Almost $35 on a few transactions worth a little less than 1200.
Seperate account, Never had a problem with paypal, had it linked to my account for 2 years without ever using it, and 2-3 years of use, never had a problem, does make money a little easier to spend. Then again, most banks now have the 0 liability.
One nice thing about the paypal accounts is intrest. My banks savings acct is at 0.5%. Paypal, basically checking is at 4.05%.