That is exactly what happened to us last year, the moment we went over $100k in sales per month paypal risk management called and forced us to accept their terms in order to continue using paypal. We did manage to get it to 3% of each order + $10k balance, "PayPal will retain in your PayPal account a minimum balance of $10,000 USD and 3% of the net proceeds of each payment received into your account for a rolling period of 90 days ending on the current date."
Unfortunately, there are a lot of people who refuse to pay without paypal, so we were forced to accept this in order to stay in business.
It utterly sucks because it takes any kind of risk from paypals back and puts it in the sellers.
P.S: it doesn't have anything to do with accepting credit cards, they do this every time you hit a large sales volume aka when they assign a 'dedicated paypal manager' to you.
Update: i remember at the time they put a reserve on us we digged in and calculated, figured out paypal holds about $300 mil for 90 days with it's new system, they probably get serious interest from that money, yet we see none, what if the currency goes down in those 90 days and i get to lose a large amount? It's not likely you'd see any compensation from them.
What SV needs to do is help the GDP go boom so they can chip in enough tax money to cover NASA's expenses for their groundbreaking discoveries. +1 if you agree!
The project as it is will fail big time.
1.Nobody will top up some $500k to an anonymous.
2.There's not much details for any legal matter, are we making some kind of an association or what?
3.In the end this .app domain might make profits, if so, will we see any?