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From PayPal, About Security:
The security of your information, transactions, and
money is the core of our business and our top priority at PayPal.
PayPal automatically encrypts your confidential information in transit from
your computer to ours using the Secure Sockets Layer protocol (SSL) with an
encryption key length of 128-bits (the highest level commercially
available). Before you even register or log in to our site, our server
checks that you're using an approved browser - one that uses SSL 3.0 or
higher.
Once your information reaches us, it resides on a server that is heavily
guarded both physically and electronically. Our servers sit behind an
electronic firewall and are not directly connected to the Internet, so your
private information is available only to authorized computers.
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