If there is another alternative to PayPal, then please post details. As it sits, PayPal is a well-run service that does exactly what it says on the tin, and doesn't seem to have any competition. In those circumstances, you pay what they charge for their service or don't use it - it's called a capitalist economy!
I use PayPal gift with people I know very well and have met personally, and accept the additional charge to me as part of the purchase price. For those I don't know well, or can't check on easily, I use normal service and add the fees to my payment. HTH
