Ever since I first started doing business online, I've been very careful to maintain a checking account that I've only got associated with PayPal. I have another checking account for personal use, such as everyday purchases, groceries, etc. But the one I have associated with my PayPal account keeps me safe in case someone hacks into PayPal and steals my information. This is on the advice of my banker, by the way. I wouldn't have really thought about it until she mentioned it for security purposes. When she did, I opened a new account just for personal use.
Having a separate account doesn't cost me any more than just having one. I rarely use the checks - mostly use the debit card. In fact, I've only purchased checks once since I opened the account!
I keep a very small balance in there to pay for some of my domain hosting from Yahoo! Small Business. I pay for other hosting and domain registrations straight from my PayPal account, so that I can keep my records straight. After all, that's where my online earnings are deposited anyway.
