"May 8, 2016: When you signed up for your PayPal account, you agreed to our User Agreement and Acceptable Use Policy. Because some of your recent transactions violated this policy, we've had to permanently limit your account.
Please remove any references to PayPal from your website."
They never mentioned which transactions violated the policy, we have never had any complains from our customers. There was no prior warning. We called them and they asked us to email them. We sent multiple emails and nobody bothered to respond back. We lost 30% of our recurring monthly revenue right away!
We now use Stripe as our sole payment service provider. After this experience, we will probably never accept Paypal again.