Need help with E-bay & Paypal
 

I tried to bid on an item but got a message that the seller will not accept a bid unless I have my paypal account linked to my e-bay account.
Is this legit or is this phishing? Why would they want this?
What is my security exposure?
Is there any reason I don't want to do this?

Aren't paypal accounts "linked" to ebay accounts all the time? I guess I'm not sure what you mean my linked. I know when I win an item on ebay, and go to pay, I automatically am connected to paypal, so I assume that's what you mean. If so, that's common.

When I tried to make a bid, I get this message:
This seller has set buyer requirements for this item and only sells to buyers who meet those requirements.
You are unable to bid on or buy this item because:

You either don't have a PayPal account or your PayPal account is not linked to your eBay account. We encourage you to register with PayPal - it is the fast, easy and safe way to pay.
I have paypal but I've never heard of this. There are two links. One to open paypal and the other if I already have it and want my paypal to be linked to my e-bay account.
Link Your Account Secure Transaction
--------------------------------------------------------------------------------
Log in to your existing PayPal account to link it to your eBay account.

PayPal Email Address:
(e.g. name@domain.com)
PayPal Password: Forgot your password?

I have been registered with ebay for a long time but do very little buying/selling. Having your PayPal account tied to your ebay account is common practice I beleive and I would imagine the risk is pretty low. Doing this makes paying for and receiving payment very quick, easy, and maybe safer. Im sure someone else who does a lot can chime in.

Not only that but since ebay owns both, they make more money enforcing this rule.

E-mail the seller and tell them you want to bid, but can't because of this setting. Ask to them to create a variance for your Ebay i.d.

They go to the site map, selling activities, buyer block exemption list. They'll drop your Ebay i.d. in and you can bid.

Happen to me before...just don't pay the item and buy another one from another seller.