Is Paypal going to be the death of Ebay

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Ebays decision to force seller to only offer paypal as a payment method is going to greatly affect the future of Ebay. The lame excuse used is it is being done to protect buyers and sellers but paypal reputation is far from secure. When handling claims paypal delays and only respondes with cut and paste answer.

With a Real Merchant Account, your funds are deposited into your personal or business bank account, which you control and which is also protected by Federal Banking Regulations.
With PayPal, your money is deposited into a PayPal Account, which PayPal Fully Controls.

Since PayPal is NOT a bank, they do not need to follow federal banking regulations. These regulations are in place to help the "Average Joe" avoid issues like having their bank account frozen for 6 months with no explanation...(Imagine if your bank was permitted to do that!)
Because PayPal is not regulated in the same way as a Real Merchant Account, Paypal accounts are frozen for almost anything and without warning. The account can usually receive money while it is frozen, but it certainly cannot withdrawal money. Once an account is frozen, the funds are often held by PayPal for months on end with Absolutely No Recourse for the merchant.

Merchants finding themselves on the wrong end of a frozen Paypal account will still have to find some way to pay their obligations and fill orders for the weeks and months while the account is restricted. A domino effect occurs when a merchant's account is frozen, leaving them with No Means To Fill Orders. Those orders are then disputed by customers, creating more chargebacks and the illusion of fraudulent activity on the part of the merchant. "Welcome to the PayPal Nightmare." The Best Solution?
 
Paypal does periodically start freezing accounts which as they are not regulated they can and do at any time they please this is not protection this is a large company using your money for thier own needs. Vote with your feet and use online auction sites that are not there as fee collection sites and they are growing due to Ebay/paypals greed.
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