The disease of PayPalism is spreading.
Hi! I'm sorry to be dense, but could you explain what encompasses PayPalism? I'm guessing you're referring to: -Excessively complex user agreements -Ability to arbitrarily suspend accounts -Ability to void credited funds Are there any other aspects that you (or anyone else) feel should be included?
Such businesses take huge risks since they are dealing with money and their bad phenomenons (tax evasion, credit-card/identity abuse, money laundry) without having real face-to-face contact and customer identification. Therefore, in order to stay competitive and manage their risk, they have in their agreements termination clauses which enable them to disable suspicious accounts unilaterally without providing explanations.
For both AdSense and PayPal, sustainable competition at feature-parity failed to appear. There aren't any agencies that allow a guy with only a few thousand impressions per month to earn a buck with a pay-per-click model, or any banks that allow you to open an account with them just by providing an email address. Which leads me to believe that the account closures are just part of the business model assumption which allows PayPalism corporations to manage their risk and survive.
But maybe I'm wrong and something better will emerge. The trick is to improve interactions with legitimate accounts while keeping abuse detection algorithms secret. Which might be a very, very difficult problem to solve...