Google Checkout is an alternative I have ready in case something goes wrong with PayPal. I still prefer PayPal 150% but I would never let my business get damaged because of one company. Never put all your eggs in one basket.
It is ridiculous that they would suspend your account because of someone else paying with a fraud credit card. If what you are saying is true, then it may be best to just offer to pay PayPal back the amount they lost due to a fraudulent transaction and write it off as a business expense. This shit happens.