There seem to have been many of these horror stories over the past couple of years. And especially if you're a small business, not having access to your funds is just completely unacceptable.
Thats the part that makes PayPal unbearable. As mentioned above I have had questions asked from my merchant provider over transactions but at no point did they freeze my account. They called me, sorted out the issue and my business kept running as usual.
I'm curious because I've heard similar rants about many products that process payments for merchants- Paypal, Amazon Payments, Google Checkout, etc.. I'm interested how your provider is able to circumvent all this red-tape that larger companies seem to have.
My merchant provider is with my local bank. If you deal with a bank it suprisingly much nicer than dealing with merchants such as Amazon, Google or PayPal