lammert - 2:44 pm on Feb 4, 2010 (gmt 0)
It is not just Paypal. I live in two countries periodically in Europe and Asia. Some credit card processors have no problems with it, others just block every payment I do from Asia while they accept the same payments with the same credit card from Europe. One of my problematic ones is my DNS service for my domains. I have to pay them while I am in Europe because it is impossible to pay the subscription from Asia, even though it is a business payment and I'm a long time client.
I thought that payment processors like Paypal and the purpose of credit cards were to provide global financial services and make the world border-less. Unfortunately it turns out otherwise and if these institutions can't close the holes in their systems, they just block the functionality of the system for whole groups of people based on land borders.