No, you do NOT have to accept Paypal via eBay sales.

You need to offer one form of electronic payment, either Paypal, Propay or similar, or credit card merchant facility.

Paypal is NOT compulsory. They tried that a few years ago in Australia and lost..

Paypal is handy for buyers and is what they like to use, but it is not compulsory.

I think it depends on the type of items one sells.

If you sell used or breakable goods, or wearable goods, such as electronics or clothes, then Paypal, with their 180 day returns, may not be a good idea.

As for myself, I know that accepting Paypal does help make sales.

I have been shafted by them a few times, but not many, given the amount of transactions.

Whether this will change after the 180 returns come in, time will tell.

With credit cards, buyer always had 180 days to dispute transaction, or even more..