We've now found out about protection when paying for flights though Paypal. Although paying by PayPal gives some protection against ID fraud but Section 75 of the Consumer Credit Act doesn't apply to Paypal transactions, even if the Paypal account it topped up with a credit card.
We have now booked our Monarch flights using a credit card just to be on the safe side, the fees were less than £25 and it's better to be out of pocket by a fraction of the cost of the flights than lose all of our money.
As a bonus we got £10 off each ticket by using the promotional code 'PICNIC10'
