If it was a stolen credit card it could come back IMO.
I actually like PayPal and use it often. I’m not crazy about it unless I am shipping to a confirmed address and get shipping documents confirming receipt. PayPal requires this for purchases over $250, at least when used in the traditional way.
In most cases I prefer to go normal PayPal route as they provide protection for the buyer and seller. With FnF, PayPal isn’t making anything, if something goes wrong they will not be there in anyway to help you out.
Since it’s a local pickup I would prefer cash, unless I really trusted the person.