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Even content that is simply "objectionable" is included as sufficient cause in the terms.
I hate what PayPal has become and want nothing to do with them.

But, what payment processor should I be using instead? Venmo is owned by PayPal. Zelle (and Venmo) use Plaid, which accesses your entire checking account history. What's left and viable?

Zelle doesn't use Plaid if your credit union or bank builds in Zelle to your banking app.
Not sure about the US but penalty clauses aren't valid in UK law. You can only charge for what you might lose as a result of a breach of contract.

I can't imagine how PayPal would incur $2500 costs as a result of someone buying a traveller's cheque.

They will just take it from your account and then you can sue.
I don't doubt it!

Maybe I'm just old but it's been 20 years since I last trusted PayPal enough to leave a balance there :)

So you give PayPal your bank details to withdraw your balance and they create a direct debit allowing them to plunder your bank account. This is how they operate in the UK anyway.

PayPal is best avoided.

DDs can always be reversed on the account holder's instruction. But yes, they're just the transfer service of last resort for me.
That's not true. Just two months ago a friend of mine disputed a DD with her bank and they refused to reverse it because she couldn't prove it was erroneous. I'm nearly sure the DD guarantee used to be stronger, but this part now reads:

> If an error is made in the payment of your Direct Debit, by the organisation or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.

(comment deleted)
This is plainly illegal. Just because it is written in a contract doesn't mean that it will stand up in court. Paypal is opening itself up to major class action lawsuits over this. Liquidated damages are 1) extremely hard to prove and 2) Paypal has to prove that the damages incurred were actually $2500. AG's are going to have a field day with this one.

https://www.griffithdavison.com/liquidated-damages-are-unenf...

Why does the title say flagged and why is there no vouch option for this flagged article? Paging dang for the second question.
Update: I guess I can't page dang, because I can't flag my own question. Anyone care to flag the above comment for me?