[onli]

That is not true in the UK, where the OP is operating in. Paypal is a bank here and subject to regulations.

[Silhouette]

Whose regulations, though? They're not a UK bank, and it doesn't seem clear that UK courts have any practical ability to help if a UK merchant has a dispute with PayPal and feels they need to resort to legal action.

[mratzloff]

Ah, I missed that he was in the UK. Thanks for pointing it out.