If Paypal notices too much money going through your account, they will report you to your country's tax agencies and/or the entity that oversees business licenses in your country. If they think you are running a small business and you don't have a license for it, Paypal will probably freeze all your money for 180 days.

Or if they think your funds are being used for illegal purposes, they are also likely to freeze all your money for 180 days.

You also may lose your consumer chargeback rights that using a credit card would give you but buying with Paypal does not.

So when using Paypal, remember, big brother is watching you and you better hope he likes what he sees.

For additional reading about horror stories regarding Paypal, visit http://www.paypalsucks.com