It seems that Paypal are frowning upon 2 tier affiliate programs or sites that offer products with resale rights. I just knew about this today, because some accounts and sites have beeing checked. They say that it's MLM. I was very surprised, and will change my sites to abide to their rules: http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/use/index_frame-outside&ed=rich_quick "include any business in which a person receives proceeds from his or her own sales of goods or services, of recruited members, or any combination thereof" "Offering commissions to recruit new members" But if the member doesn't have to pay, it's still forbidden? Aren't they referring to members that have to pay a startup kit or something? This AUP can be read many ways, so they really must review each site before saying that it's against their AUP. Most affiliate programs on the net offer 2 tier programs. I never thought that it would be considered shady. This debate is going on at several marketing forums. They all say that your site must be manually reviewed by Paypal. I won't risk my several years old account...
After many hours later, and several representatives, one webmaster that had their Paypal account limited, finally got a positive reply. It seems that their AUP has several interpretations :/