ember - 5:22 pm on Jun 3, 2007 (gmt 0) Paypal can do the exact same thing by freezing your account.
Back in the day, we used to accept direct credit card payments for non-tangible service on our site. Being naive and new at this, we did not get written signatures for every sale. Despite having, I thought, a good relationship with one buyer, one day I checked our bank account and the credit card company had stolen $8,400 from our account because the buyer, nearly 3 months later, claimed she never got the services she purchased. Without her signature as proof, we had no way of proving, by the credit card company's standards, that she'd indeed authorized the sales. We were also charged $1,500 in chargeback fees. Never got any of it back.
Paypal can do the exact same thing by freezing your account.