96% is low as far as I'm concerned. If they don't have 100% with a high volume of transactions I usually won't bid. Some times I'll take the effort to research their history if it's a product I really need and the price is right, but if that negative feedback looks well deserved, I won't risk it.
As far as the federal offense or mail fraud thing goes, that's a long painful process. You have to wait 30 days from the issue date of the money order before you can file a complaint. Then, all they do is research whether or not the money oreder was cashed and when it was cashed. IF it was cashed you are on your own to persue any means of recourse. The postal service and the government DO NOT prosecute the offenders, it is considered a civil matter not a criminal one. This is what I was told by the postal inspector's office here when it happened to me. I figured it was a $30 lesson learned and just filed my complaint with Ebay.
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