There&#x27;s very little thought put into a discussion on &quot;why&quot; PayPal froze those funds. PayPal says &quot;based on what we&#x27;ve seen in the past there&#x27;s a high probability that you&#x27;ll collect a lot of money for an event and then not execute that event. If that happens, we PayPal will be on the hook to make those payments to those disgruntled end users. So we can either 1) Simply refuse to work with you or 2) risk share with you by keeping enough in your account so that we can reduce our exposure to those types of claims&quot;<p>If you chose a business model with an elevated level of risk then you&#x27;ll have extra expenses associated with that.<p>I really dug that email. It&#x27;s encouraging that it triggered what sounds like a very real internal discussion amongst multiple people there vs being getting completely ignored.<p>I know I sound like a PayPal apologist - I&#x27;m not! I know there are some very real horror stories out there. It&#x27;s just that they&#x27;re probably one of the few payment companies that would enable this business to actually be a business and asking $20K in surety when you&#x27;re _on the hook too_ isn&#x27;t as mean spirited as it first appears.