Real businesses get chargebacks and they file through the claim process. Real businesses do not get paypal frozen if they had opened the account properly and gave truthful information on what they are doing.
Oh my. I'm sorry, but you're mistaken. It happens all the time.
+1, I cannot agree strongly enough. I had horrible issues with Paypal. They froze my account for 6 months, reversed payments I had sent to suppliers and refunds to customers to the tune of $7000, and refused to repay these people even after the provided proof of shipments/services rendered. I had to repay them with Western Union, and since my capital was stuck in Paypal, that was not an easy task. I called their support, one person was extremely rude, saying "Our reasons are proprietary and confidential, this is a private company. We are simply telling you we no longer want you as a customer, which we have the right to do". Another agent was nicer, but still unable to unfreeze the account or do anything useful.
They did, after 6 months, release the funds. But by then damage was done. Now I am part of the "love bitcoin" community lol! I guess Paypal is right, they can choose to not do business as they see fit. It's a free market. However, reversing refunds and payment to vendors and then freezing them is unacceptable. In fact they even froze & terminated one of my vendors accounts. I think "Our reasons are proprietary and confidential" is unacceptable given this tactics.
Screw paypal. (And Bitfloor's bank). Long live bitcoin!