Paypal is offered a lot as an option for virtual goods, such as virtual items or services for games. There is always a lot of caution around it, because anyone

Paypal is offered a lot as an option for virtual goods, such as virtual items or services for games. There is always a lot of caution around it, because anyone that has used it in this area for longer than a day realizes that they can be scammed nearly arbitrary amounts if they decide to trust payments from Paypal. For this reason, it's generally required either that you do out of bound methods to help verify your identity (i.e. show us a picture of your ID and we will make sure it matches your Paypal name after you pay us), and/or that you have a lot of reputation within whatever community you're working from. If you do this verification wrong as a merchant, you will find yourself charged back with absolutely no recourse after you have only sold to a few customers. I've seen this happy many times, sometimes with $10 and sometimes with $1,000. Even if you do this verification correct, you can still find yourself charged back with no recourse, so it's advised not to do this with large payments or sketchy customers, especially in the area of virtual goods. This is also commonly done in areas wiht donations, such as Twitch donations of thouands of dollars being charged back after the sender has already recieved their desired reaction/fame/etc. Given what I have seen, I read this clause as a requirement that you are not allowed to fairy inform users about the risks of Paypal, and depending on how this requirement is enforced, it could mean the end of Paypal as a method in the virtual goods area, as new methods like Bitcoin slowly take over due to the lack of chargebacks.