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PayPal begins using your company name on customers credit card statements Hunter
Just found this:
Beginning August 24, 2002, PayPal will make it easier for your buyers to identify credit card payments made to you by using your Credit Card Statement Name.
...displayed on your customers' credit card statements in the description section and will appear after PayPal* (e.g. PAYPAL*MYBIZNAME).
It sounds funny, but there are a few out there that forget what they bought when they see their statement even with the selling biz's name identified, so I would imagine it must have been a slightly more frequent occurance with paypal.