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We discovered it first hand - we run Lab401. PayPal seized ~50k from us (check the first link in my original post).

It took us literally a month of calling LU law firms until we finally found one that didn't have ties to / being the tentacles of PayPal.

Can you give some clues about the alternative to PP?

Credit cards - yes you might lose 20% of your customers - but can u find a payment processor to handle your business?

EDIT: the story from your other comments is pretty hair raising!!