Paypal is on the verge of bankruptcy and hence you must be very careful with your payments. Paypal is holding money from the Buyer, seller, Refunds. Some of the steps taken by Paypal to stay afloat during bankruptcy are
1.Paypal is freezing merchant accounts when they see a bigger transaction. Not tranferring payment to the Merchant.
2. Paypal asks for highly sensitive business documents to restore the Paypal account. This is to ensure that account stays unlocked. The documents asked include - the Bills of supplier of the merchant, Costing of product, Contact details of Supplier of the Merchant, The price of buying Raw material etc.
3. If the Customer asks for a refund and the merchant also agrees (Because merchant is not getting money anyway). Paypal denies refund to the customer saying that the merchant account is frozen.
4. They unfreeze the account when they see no further payments are coming in, in a desire to invite more payments.
5. After the account is restored, then also the customer does not get the refunds.
6. If there is new payment, it is still held by paypal (even aftrer the account is resored)
