It is generally accepted that PayPal is the reliable company that protects its customers and is a benchmark of security and honesty. The case happened with us completely dispels that illusion.
Looking ahead to say that the story like ours happened with different people around the world about what you can find detailed descriptions on the Internet.
I've registered in PayPal 7 years ago to receive payments from our CC customers. Went through all the circles of the hell, I was asked to send all bills for the apartment, passport, driver's license and even my home phone bills..
Generally it was past 2 months checking and rechecking, and finally my account was approved. That is, it was given the status of "verified business account"
I can not say that it really helped our business, but small payments from customers with credit cards come to us from time to time.
Money for a PayPal account is enough hard to use, not so many companies are ready to accept it (now I understand the reason), so amount have been accumulating on our PayPal account. And once day we got from them the following letter:
"We inform you that you sell prohibited items through our PayPal system, and we warn you, and the second warning will not be if another one case, we will cut down service"
"What is the prohibited items?" - Jammers, PayPal has replied. Under US law to sell them forbidden. And that you do not sell them in America we do not care, we're an American company and work under American rules," - PayPal has answered.
(Jammer this is a device that suppresses cellular communication within a certain radius, in this case from 3 to 10 meters)
For reference, I must say that we did not sell even one jammer via PayPal, the clients just had the opportunity to pay via PayPal, no more.
Well, we remove the option to pay with PayPal if the customer chooses jammer, and along with a number of other "sensitive to US law" goods to the future no questions from PayPal.
And in a few months we receive notification from PayPal, that our service is frozen, without the right of recovery, and the money that we have on the account are frozen for 6 months (!) too according to our PayPal internal rules.
To my objection, that we don't even provide a technical possibility to buy it via PayPal, they reply that we generally can not place these products on web site according to US law and frozen the whole amount for 6 months. (why nobody told us about it in advance but only asked to remove the ability to pay via PayPal..?)
I have to say, that after 6 months, they gave us ability to withdraw money. But I wonder if this amount would be a critical for us, PayPal does not care that they freeze our money for so long time?!
Actually I have not ever seen more neglect to clients than from this payment service and I am happy that me no longer have to spend a lot of time for useless and empty correspondence with them.