Every time we see a 'PayPal bad' report here, it's someone running afoul of a perfectly reasonable condition. The biggest one is people running businesses that

Every time we see a 'PayPal bad' report here, it's someone running afoul of a perfectly reasonable condition. The biggest one is people running businesses that take money now and deliver a product at some time in the future, putting all the liability for chargebacks on PayPal, and then freaking out when PayPal puts a hold on the business's funds till their product is delivered. I'd say it's not the lack of competition that allows PayPal to have the user agreement they do. It's the fact that PayPal's user agreement is as liberal as running a successful money transmitter business can allow.