Yeah, but the problem is that once they freeze an account, one of two things happens:
1) They only suspend withdrawals, which means payments continue to go in and all of that money is also held unless and until PayPal releases it.
Or
2) They suspend both incoming payments and withdrawals. In this case, you’re back at square one, plus you’ve wasted the PayPal implementation time, plus they are withholding whatever funds you had when they arbitrarily decided to suspend the account. If your customers have recurring payments setup when this happens (as is the case with most SaaS companies), you’ve lost all of those customers, likely for good, because you have to contact them, explain that your PayPal account was shutdown, and then try to get them to give you a credit card directly.
Further, until you realize that they have suspended incoming payments and disable PayPal on your site, customers trying to pay you receive an error message from PayPal, and you’ve likely lost each and every one of those customers for good as well - regardless of the payment methods you offer.
So again, PayPal and many of its customers are nightmares.
PayPal has a worse track record than most widely known alternatives. And at least in the US, they're less regulated than the banks from which one typically obtains merchant accounts. These two facts together are a bad combo.
I believe they are regulated as a bank in the EU. That said, their EU head office is in Luxembourg, which along with Ireland is one of the most pro-corporate locations they could have chosen and one of the least likely to take a pro-consumer stance where EU law allows them discretion.
1) They only suspend withdrawals, which means payments continue to go in and all of that money is also held unless and until PayPal releases it.
Or
2) They suspend both incoming payments and withdrawals. In this case, you’re back at square one, plus you’ve wasted the PayPal implementation time, plus they are withholding whatever funds you had when they arbitrarily decided to suspend the account. If your customers have recurring payments setup when this happens (as is the case with most SaaS companies), you’ve lost all of those customers, likely for good, because you have to contact them, explain that your PayPal account was shutdown, and then try to get them to give you a credit card directly.
Further, until you realize that they have suspended incoming payments and disable PayPal on your site, customers trying to pay you receive an error message from PayPal, and you’ve likely lost each and every one of those customers for good as well - regardless of the payment methods you offer.
So again, PayPal and many of its customers are nightmares.