Wow, incredibly timely- this is EXACTLY what we've been going through for the last two weeks. EXACTLY.
The problem with PayPal is that there is absolutely "0" real customer support. We were labeled as a "money transfer service"- even though that's not our business- and had our acct suspended. Our site isn't public yet, we were just testing live payments as opposed to the already completed sandbox tests. We thought we'd be ok since we modeled our pay structure similar to a few others we had seen.
When you call PayPal, you get a nice enough customer service rep- friendly but really doesn't know anything. They put a "note" on our acct to have someone higher up call us back...and that's when the real fun begins.
If you're lucky enough to have the rep call you (we're like 2/7), you can get some limited info. If you miss the call, or have an additional question after the fact, you have to go through the first level of general cust. service and hope that someone will call you back. No left messages, no other phone number you can call, definitely no dedicated rep. it's taking weeks out of our production dev time.
What makes this mockery of service so severe is that our business depends on buyers paying sellers. We got a form email letting us know of our general "violation", but no specifics. It's up to us to interpret what exactly violates their policies. Thanks to this article, and everyone's comments, I do understand some areas where we possibly made an error- which I take responsibility for- but without a definite response we won't know if we accidentally violate it again when we spend more to retool our system.
It's ridiculous.