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  >are going to these customer-service-destroying efforts at fraud prevention because the regulatory environment forces them to do so.
I'm pretty sure there's no fraud prevention regulation that requires you to stonewall your customers.


True, this certainly could be just a bad policy on Paypal's part. However, if there is even a remote possibility that Paypal could be held liable for fraud using their services then I can sympathize with "shut them all down" approach. After all, like garbage mashers, some things should not be trifled with.




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