Please read saurik's posts in this thread. He provides excellent, reasoned explanations for what is going on.
Personally, I think the conclusion should be: if you have an unusual business model or transactions that are not seller-to-buyer, don't use PayPal. It goes against their rules, and you will lose money and go through a lot of grief.
Personally, I think the conclusion should be: if you have an unusual business model or transactions that are not seller-to-buyer, don't use PayPal. It goes against their rules, and you will lose money and go through a lot of grief.
edit: wdewind as well.