Summing this long story I want to say that I’m totally shocked about how PayPal treats its customers. Sellers are those who pay the fees and who make PayPal the business it is. I won’t be using PayPal to sell anything from now. They have grown too big to be efficient and caring for their customers. Quick to make totally disruptive decisions and to dismiss legitimate businesses without really taking a look at what it is.
They took the liberty to totally halt our business, to cause lots of lost sales and a major cash flow blow only because we got successful with one promotion, after being their customers for a long time. Right, they “regret any inconvenience this may cause”. They are “making every effort to minimize any disruption to your business”.
If you’re selling anything and use PayPal as your only payment option, I urge you to reconsider. They can cut your oxygen supply right at peak of your success, of course “for your own protection”.
My wife and I have looked at paypal as means of collecting donations on online for our soon-to-be fulltime jobs as missionaries. It's stories like this and the many others in the comments that make me steer as far away as possible. Now, looking at one of the processors suggested: FastSpring.