These shitheads banned me for life from using their service and it's quite the inconvenience with certain online activities, stuff for kids etc. that only accept Paypal.
High level - I used to receive cash gift cards (think VISA/AMEX etc) through work. For various reasons I wanted those converted to real cash in areas of my life that require cash. The best approach I could come up with was running them through a Paypal account acting as a vendor and selling "services" and paying with the cash gift cards. At that point I could request a paper check from Paypal which could be cashed, and I was only out a small processing fee on the gift cards. Seemed like it worked out for everyone involved, Paypal got paid, I got my cash.
That was up until they locked my account and accused me of money laundering. They held on to $1500 of funds in my account for 6 months until they finally released it and then permabanned me from using Paypal (and eBay) claiming I violated their terms of service. I read those damn T&C's all the way through and no where did I violate anything, they just didn't like what I was doing because I wasn't operating a "true" business that couldn't provide invoices etc. end of story - fuck paypal.