What is PayPal's expanded use program?
This is a procedure followed by PayPal to verify credit card and bank information entered in their system by registered user.

One way of the verification process is charging a one time and a refundable micro payment of around $1.95 USD from a user account.

The fact this charge is successful signals to PayPal that the account has some degree of legitimacy; otherwise PayPal does not honor that account to proceed with order. In fact PayPal uses multiple other factors including account numbers, address verification, and credit card and bank account cod numbers.

The one time $1.95 USD payment is refunded immediately after the user pay the first time using PayPal. If you do not want the $1.95 stay longer in the hand of PayPal just enroll to the expanded use program only after you decide to pay.