For a few reasons.

First, it's not always "small claims." In the case of our charity fundraising at Christmas, we had collected $20,000 for those kids. That means real court, with real lawyers, and going up against PayPal's legal department. They will file motion after motion after motion and bankrupt your legal fund.

And really, public airing of corporate bad deeds is extremely effective. After we publicly shamed PayPal for keeping fees on charity donations they forced us to refund, they were embarrassed enough to donate $20,000 to 200 needy families.

Traditional court is not where individuals really have power.

> going up against PayPal's legal department

Good luck with that.

Whoever has more money for lawyers, wins.

Yes, do that. The court will dismiss your case as you did not read the Paypal terms and user agreements.

I'd be willing to bet that completely ignoring your customer is a business practice that goes above and beyond the T&C. Unless the T&C says "In the event we flag your account for fraud, we will not touch you with a ten foot pole..."

Again, the problem isn't the automated risk prevention system, the problem is the complete lack of customer service if/when it happens to you.

My answer was about going to court. So you think they have a case in court because PP has not customer service on the level you want them to have?

Small claims courts will not handle intercompany disputes. They are intended for small disputes between individuals.