[ChuckMcM]

TL;DR version : Its another 'Paypal isn't a bank' complaint.

Paypal isn't, they don't have the resources or the tools that banks have, you shouldn't treat them like a bank. Never keep a 'balance' with them, they don't have the same restrictions that banks have and you don't have the same rights that you do with a bank.

In this piece the story is an open source conference and a balance of $127,000 Euros that gets held hostage. Here is a clue, if you're looking at those sized balances and that size conference, get a relationship with a bank. Get a merchant account, etc etc.

Paypal is all about not having any risk. Lots of people no doubt try to abuse it all of the time. They probably assume you are a crook even when all signs point to legitimacy because the 'really good' crooks look legit too.