Yep, definitely understand that, which is why I specifically pointed out I don't have an issue with Paypal (or any clearing house/bank) enacting an initial hold

Yep, definitely understand that, which is why I specifically pointed out I don't have an issue with Paypal (or any clearing house/bank) enacting an initial hold, even for an existing and ongoing business when the transaction volume is vastly different then say some rolling monthly average as that is a potential sign of fraudulent behavior. What I have absolute contempt for is after going through business validation with Paypal (sending incorporation documents, owners details, passport copies proving US citizenship etc), proving the orders are real and even having suppliers provide signed notarized documents proving product is ready to ship, Paypal will still hold the funds. They will also ask for tax documents and many other banking documents that in all fairness they don't really need to make a determination, but they will still hold the funds. Hence, IMO, the policy stops being fraud protection when the business has proven it is legitimately charging clients for services provided or products shipping. Paypal is a business that has frankly been totally dishonest with their customers as the lawsuit has highlighted. Which is, at least in part, why they are being forced to change their terms of service pointing out they will freeze funds for 180 days if they deem the transaction to be potentially fraudulent. A point on this, IANAL, but from how I read the findings the transaction doesn't have to be fraudulent to be held, just if Paypal "feels"/"deems" it could be, they can hold the funds for 180 days, as long as their TOS say they do this. It also doesn't take a financial wizard to figure out that Paypal is almost surely profiting from the funds they place on hold. Just think about it, its not $50k they are holding in mass, it can be easily millions of dollars day to day that they have full control over, it is essentially a no interest loan they get to have. And do you not think it is interesting that Paypal was (don't know about now) sending out pre-approved loan emails to the very same businesses they were actively holding funds from? Seems like double dipping and a totally immoral business practice. In fairness, I think these policies were originally created to protect consumers and implemented in good faith, but they found it to be an easy profit center which has created the problem.