[Lasher]

Lots of comments here are focusing on the mechanics of credit card processing and why Paypal might have to hold funds, but to me the entire article was really about the customer service angle and how Paypal handle this. They freeze accounts and make it next to impossible to get valid feedback on why.

He might have argued the point, but in this particular example a simple explanation of "We are concerned about liability if you cancel an issue before the physical version is delivered. The hold on funds helps protect us in that event".

The Paypal model fits small transactions and small volume. As soon as you are big enough to feel like you deserve / expect such an explanation it is probably just time to move on.