That's ridiculous. It's like going to a restaurant, paying upfront for food, and then having them deny your food, saying, 'if you had read our terms of service, you would have know we could do this.' Obviously, I wouldn't be a repeat customer at that restaurant...
PayPal wants to be an easy, intuitive service. That is why it seems straightforward when you first use it. But really, who reads all the terms of conditions and user agreements, etc, for every service and product they use? The user agreement is out of the way, and the closest thing I found in it was is, 'We do not guarantee the identity of any User or ensure that a buyer or a Seller will complete a transaction.'
That's very ambiguous and I would have never equated that with 'money in your account is not actually money in your account.' There may be something else that's more difficult to find, but I was not expecting this as a policy, and it would be absurd to expect every customer to remember every aspect of the user agreement, among many other 'legal agreements.'
There is no excuse for this. Almost any non-biased party would agree.
