Another interesting eBay/PP horror situation that happened to my friend.
He was a PowerSeller with about 99.5% positive feedback, he sold about 100 baseball cards a day, most for about $5.00. When you sell this many items, and ship the items via USPS first class mail, then you will likely have several items lost in the mail each money, if not more. That is over 3,000 items shipped a month, I'm sure 10 or so get lost. So occassionally he would have complaints filed against him by buyers who filed these complaints before even asking for a refund.
Everything went on fine, as the huge majority of his transaction were amazing. He was a member for over 7 years at this point.
He decided to sell his car on eBay, he needed money fairly shortly to pay for grad school, sold his car for $9,000. He required an immediate deposit of $2,500 via PayPal after the auction. The winning bidder paid $2,500 to his PP account immediately.
His PP account had $5,000+ in it at this point. The next day he gets an e-mail from PP saying his account had been suspended for unusual activity as well as excessive complaints. They would not tell him what they meant by unusual activity, but after reading similar stories on a PayPal message board, he found out that it was because he usually has $5 transaction and PayPal decided that he shouldn't have a transaction for $2,500.
They froze $5,000+ for six months, and told him he could ask for his money after that period and possibly be reinstated. He lost his livelihood as a seller as he could not accept PayPal any longer. He could not afford to go to grad school that semester, and had to start a night job.
This is a guy who had well over 99% satisfied customers for 7 years, and sold tens of thousands of baseball cards. PayPal randomly decides that he shouldn't have a large transaction and ruins his entire business.
It has taught me several things, never trust PayPal, they are a VERY shady company that does strange things to honest people. And to never have a business solely based on eBay. I have read hundreds of stories from other reputable people that this also happened to on that PayPal message board. Some people had over $30,000 frozen for 6 months by PayPal. PayPal even froze $27,000 that was intended for Hurricane Katrina relief.
I am praying that the rumored Google selling site and Google Wallet come to fruition.