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I'm surprised to read all the backlash. I think Paypal is excellent.
They allow you to send and receive funds. They provide several website integration tools. The reports are detailed (slow but detailed), they have good merchant protection and outstanding customer support.
If you received a request for updated information what you should do first is close any existing browsers, open a new one and go to Paypal. Follow the steps to talk to an actual live Paypal person and make sure you're not being phished. If it turns out to be Paypal, whats the harm in complying with their information verification? They are doing you a favour by doing this.
By the way a good alternative to Paypal is Google Checkout / Wallet.
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