" I am not exposing my CC# to anyone. Paypal has it on file."
Tell that to my Granddaughter. She had Paypal linked to her checking account and the checking account was linked to her credit card for overdraft protection. Somebody hacked her Paypal account and cleaned out her checking account and maxed out her credit card. Her bank straightened it out and got her money back, but she had to go a couple of weeks without access to her accounts.
The exact same thing happens every day without PayPal being involved in any way. Someone gets your card number (skimmer at the ATM or gas pump, maybe, or these days, a photo of the card taken with a cell phone while you're swiping), cleans you out. if they're subtle about it, you might not know there's a problem until the CC bill arrives, but much more likely they'll blow it up as soon as they confirm it works.
Then again, if a pickpocket manages to empty those cargo pockets in your "steal from me" pants, and makes off with ten portraits of Ben Franklin, police will just ask you "Why were you carrying so much cash around in a crowd?" After which, you'll never see a dime of that money again. At least if your PayPal gets hacked, or your CC skimmed, you can get the money back after some hassle.