PayPal Business is the payment gateway buyers trust most worldwide, with a lower barrier to entry than most alternatives — in many cases you can start accepting payments before you have a full US legal entity in place.
In return, PayPal is fairly proactive about disputes/chargebacks and reserve holds on new or international accounts, so clear business documentation is still what determines whether funds get held long-term.
Familiar branding that tends to increase checkout conversion.
You can often get started sooner than gateways that require a full legal entity upfront.
Solid business documentation reduces the chance of a long-term reserve hold.
Not strictly, but having a legal entity (LLC/Corporation) and an EIN increases account credibility and lowers the risk of reserve holds as sales grow.
It’s PayPal’s standard risk mechanism for new accounts or unusual sales patterns, not necessarily a sign of a violation.
They are not mutually exclusive — many businesses use PayPal to build buyer trust alongside Stripe or Shopify Payments as the primary gateway.