Last year PayPal tried to withhold a payment saying I was a "new seller" which was untrue and they knew it was untrue. I contacted the CEO of PayPal (dan.schulman@paypal.com) and he got it sorted and promised will never happen again.

This week same happened so I have ceased trading with PayPal and EBay and tried to close my accounts which proved impossible. I have emailed Schulman who acknowledges but does nothing. I have been told it is due to me being a new seller, then it due to PayPal rules 10.5 for my own security, then told if I ring back they will remove hold but they did not.

So I have changed my e-mail, cancelled my credit card, and cancelled the open direct debit in favour of PayPal.

But the buyer has been unable to recover his payment to PayPal (211). PayPal did suggest I refund the payment which was impossible as the funds were withheld. They also suggested I send the goods out and when the buyer has approved them they will release the payment.
PayPal's fees are paid by me. I never agreed to send goods out on approval so I have walked.
Just posted to ease my frustration at these giant red tape driven computers with kids customer facing, managers unavailable, making up rules to deprive honest people of their money. Sooner they are closed down or regulated the better.