It's the registrar that likely to be "saved from buyer fraud" by having his money taken not you. I've been accepting PayPal for domain registrations and sales, and PayPal reversed a transaction for $200 on me. They removed the money from my account because they wanted to "save me from buyer fraud", and it was a cleared funds transaction - so there couldn't be a fraud issue if they did their job properly.
Can anyone tell me how taking money from a seller will protect him from buyer fraud? It's a good job that I didn't trust them and took the money out as soon as it went in.
Anyway, I'm now taking Money Bookers.