There are sending limits within the Paypal system. It could look suspicious if large amounts of money are being transferred from various accounts. Since Paypal will not "dip" into your checking account without permission - once the money is withdrawn - its gone! I think Paypal was designed more for micro-payments. If you are transferring large amounts of money, traditional systems like a wire transfer may be better.
Sorry I'm so long getting this info posted for whoever may be interested, but here it is:
Cherise never did get back to me, but I emailed PayPal and finally got the info - sort of. They referred me to their website's User Agreement. [paypal.com]
Quoting from PayPal's email response -
III. Sending Payments 1. Spending Limits & Verification i. U.S. Users. Also refer to: III. Sending Payments 3. Entering member numbers. Under that section, it says that you will have to either refer to an on-line credit card statement if available or wait for your regular monthly credit card statement that you receive in the mail.
Of course, they really don't give a good answer regarding under what circumstances this may be necessary, but they do state that it's "at their discretion". <shrug>
I'm not sure it's a really good answer by itself, but combined with what Cherise said on the phone, I suppose it's reasonable enough.
I have also been to several other websites during this shopping season and was requested on several occasions to input three small numbers appearing on the back of my credit cards after the main account number. This is what PayPal wants input. I don't know if this information is handled differently by PayPal than it is by other companies, like jcpenney, but this is the info that appears to be causing all the ruckus.
Sorry I don't have better info, but hope this helps folks at least a little.