From KS4ED...PayPal

[KS4ED]

PayPal started out as a good idea. Apparently, that good idea, has like
many other things...found a way to wear itself out. Like the satellite TV
business who wanted to eliminate the 5% who were stealing their
service...many times they ended up "zapping" 50% of their good paying
legitimate customers.
But, their response was, "We got those who were stealing our service.
5%
Also but, not for long. They got obessed with catching that 5% who
quicky returned and they "zapped" another bunch of good paying
customers.

Most businesses of the retail arena will suffer loses from theft.
Attempts are made to minimize them. But, when a company becomes
obbessed with their elimination...10 times the 5% will suffer.

"Freezing" a bad account of a seller also "freezes" the money of an
honest buyer. This is a dangerous practice that could be too tempting
for PayPal to hold a considerable amount of money for a considerable
amont of time for mere accounting practices favorable to their profits.

More and more now...we hear about the risks of doing business with
PayPal. Seems like we're right back to what they claimed to eliminate.