We first get a phone call from a representative at PayPal informing us that Vayable is conducting illegal activity by running a business without a Travel Seller’s license from the State of California. (...) Turns out, the State will not issue us a Travel Seller’s license even if we wanted one: they’re reserved for sellers of transportation, like airlines and bus companies. (...) I call PayPal back and tell them that we in no way fall under the state’s definition of a Seller of Travel and therefore not only don’t need the license, but wouldn’t qualify for it. “Then we’re going to have to decline your application for Payments Pro” I am told by three different representatives.
As I've argued before, traditional merchant accounts, with all their flaws, can be far superior to Paypal. Having your own account manager may be old-fashioned, but it sure comes in handy when things go wrong. And it's not even that hard to get a merchant account.