As I said,
1. Paypal support said it is technical, not a regulatory issue. Their blog only confirms it only personal transfers being a regulatory issue. They have stopped all transactions, including my business account, which accepted no personal transaction.
2. In spite of their saying otherwise I am willing to believe it is a regulatory issue, my major issue is with their absolute lack of transparency and willingness to commit too any timeline.
> The lesson you should take away has to be that you shouldn't treat a payment processor like a bank and hold $45,000 there. Doing business is in part about assessing risk, and holding all your money in a PayPal account should've jumped out as a major risk even without this situation.
1. Totally agree that I failed in accessing risk, however Paypal is classified as bank in a number of jurisdictions. http://en.wikipedia.org/wiki/PayPal#Bank_status . I hope you would agree that this behavior should be enough grounds t revoke their bank status?
2. Its not all my money, though quite a significant percentage of it. However, I am assuming that there a quite a number of people in India whose weekly transaction is > 45K$, so holding that in a Paypal account is not really unheard of.
The lesson you should take away has to be that you shouldn't treat a payment processor like a bank and hold $45,000 there. Doing business is in part about assessing risk, and holding all your money in a PayPal account should've jumped out as a major risk even without this situation.