Absolutely. PayPal is fine right up until the point when they cut you off, and then you have virtually no recourse. A similar thing happened to me (though I w

Absolutely. PayPal is fine right up until the point when they cut you off, and then you have virtually no recourse. A similar thing happened to me (though I was dealing in physical goods), and I was never able to get it straightened out. They kept asking for more info, I kept faxing it to them; it was never really clear to me what specifically they found suspicious or what I had to do to allay their fears. Having to interact by fax with people who have no authority or incentive to resolve the matter is awful; I think they hope you just give up.