Yeah, before I closed my Paypal account a few years ago, I remember this being the case as well. So I'm not sure how the other commenters are getting away with:
1. Not having to open an account to make > $500 purchases via Paypal.
2. Not having to get your account verified.
To my sibling comments: no, for purchases over $500, I believe you need a verified PayPal account, which is even more than the usual hassle.