My brother works for one of the largest payment processors in the world ie they handle most porn site transactions so they get a lot of business lol. It costs virtually nothing for a large payment processor to process an electronic draft out of an account which is why PayPal can offer it for free (as do many other sites you need to make your monthly bill payments too). The catch is you're authorizing money to essentially just vanish from your account. Unless you we're not the person that clicked the keystrokes to move the money, there's no recourse for any type if fraud. That lack of liability is one of the major factors of the very minimal fees associated with the transaction and why PayPal and other places can offer it free of charge.

It's not "ripping off a processor", it's just a choice you're making whether to buy scam insurance on your transaction or not. Even with that "insurance", PayPal has in many cases said (to me), sorry you're right but there is no money to recover, have a nice day.

I still use PayPal when I have to but I'm very carefull about with whom.