One option to using paypal is to purchase visa gift cards, they seem to be carried mostly in grocery stores/drug stores. You have to pay a couple extra bucks, but you aren't putting your bank account or actual credit card (if any) at exposure. Worst case you are out 25-100 bucks, whatever the card price. You can use these at godaddy or pretty much any online merchant.
I like the visa cards, had some problems with the master card equivalents due to the numbering structure being different than their issued cards. Takes about a half hour to an hour to clear (for card registration purposes) from the time of purchase.
Works fine at godaddy.