Same thing happened to me I had my pay pal account frozen for no good reason. I have read lots of similar stories on various forums on the subject. I now choose to use pay pal only as a back up I would really love not to have to offer it but the truth is people prefer to use pay pal,. However I have learnt a valuable lesson,
Never keep a lot of money in the account as if they do freeze your account you may go weeks without having access to your money.and Never think that you are safe as far as having your account frozen, Pay pal do random limitations for no reason. My particular case related purely to the fact that an overseas buyer paid me for a purchase over £100 and thats all it was. Pay pal said it was a transaction which put my business at risk what they meant I have no idea. the buyer had a fantastic feedback rating and was a power seller I now have regained access to my account but I have been wounded by the whole sorry story as I said I wish I didnt have to use them but they do seem to have almost a monopoly so its a bit of a hobsons choice really