Today I received a message from PayPal that paying for Tor relay server leases was a direct violation of my usage agreement.  I have been paying off-shore VPS hosts for my Tor server leases with PayPal for at least ten years.  Very interesting that they act now.

They specifically state the ban was for: 

Providing file sharing services or access to newsgroups; or selling alcoholic beverages, non-cigarette tobacco products, e-cigarettes or prescription drugs/devices.

They further state that the ban is permanent and not reversible.

I liked using PayPal because it was a safe way to pay and didn't expose my credit card information.  Before PayPal I used a prepaid card which I will probably go back too. 

--Potlatch