I have personally had paypal lock up my account and in one instance actually kept the money that was in the account. At the time it was considered a "suspicious transaction" when a friend sent me fifty dollars for a gift. Living in a different country and without any credit cards and a different bank account, they could not "prove" that I was me and kept about 350 bucks. For small deals, I still use paypal because of the name recognition and the ease of use. However, they are see more not a registered financial institution and are not governed by the same laws. All they are is a payment processor rather like an armored car driver taking money from one location to another. To say that the banks would come down on them is also a misconception and a misstatement. As for me, I always keep two business accounts up and running in case one is shut down and the money "locked up for up to six months" (which has already been proven "legal" for them to do in the courts) and when I get my net income back up where it is worthwhile, I will switch back to a merchant account that accepts paypal payments.

That being said, this is still a cool trick! Thanks for the information as it may come in handy soon!