[ig1]

I can't say I really blame them, you're in a high-risk business which tends to have lots of credit card chargebacks and you can't guarantee delivery of service. If you went the merchant bank/credit card processor route you'd probably have to put down a substantial deposit.

If you're operating a high-risk business you can't really expect PayPal or a merchant bank to absorb that risk on your behalf unless you're willing to pay for it.

PayPal's policies do forbid the kind of marketplace aggregation you're doing (Unless you're using their Adaptive Payment split payment mechanism which is designed for this sort of situation; but from your description I assume you're not)