I think this may be a good case to use PayPal regardless of the fees involved. A small percentage is lots better than getting dinged for a few hundred bucks.
I ALWAYS use PayPal for that very reason... Over the past few years I have had two problems, both of which were raised to PayPal's attention. In both cases, they found in my favor. It is sad when one needs PayPal to keep from getting cheated by a fellow Ham... When I buy something I use PayPal, when I sell something, I expect PayPal, if I can't have it that way, I don't buy, or sell...
I always get leery of folks that seem to have a problem with PayPal... i.e. the "I refuse to use PayPal because they can get into my bank account", types... I welcome PayPal into mine for sales I make, I want the purchaser to feel that he is getting a fair shake, and have a way to say, wait a moment if he ever needs to... In all of my sales, I have never had a person abuse the policy PayPal has, nor have I had a person ever need to contact PayPal, so I have learned to trust PayPal on both sides of a deal...