if you break any paypal rules then you are banned. some time -ve balance too many disputes can also leads the same
Your account can get temporarily suspended if you try to access it from different IP addresses. It's a security measure to prevent others from hacking into your account. Also, if you start receiving large sums of money that exceed the limits you declared earlier, Paypal may suspend your account to investigate this and ensure that there isn't any criminal activity.
First, have you read paypal terms and user policy: https://www.paypal.com/cgi-bin/webscr?cmd=p/gen/terms-outside There it clearly says, what is allowed and what not allowed. Read it couple of times.
You're banned at any time, when you're not follow their rules and regulations..So it is advisable to read it out their rules and policy..
I look at this posts and I now have my own opinion to add. Why even work with paypal unless you have to. If it is the only form of payment you can accept then okay. Otherwise, why not use alertpay. I understand they are far more pleasant on internet business people. Thanks.
Do not do fraud thing such as scamming people and nonetheless, read all there terms and guidelines. Having this done, you can avoid getting banned.