They have always been against anything they can labeled as "weapons"!
I learned from another knifemaker's error. He had his paypal account connected directly to his bank account in which he kept both the family and knife business money, and the credit card connected to his Paypal was also the "family" card....
He had a run in with Paypal, where a customer disputed a payment, and Paypal was able to, and did freeze everything in that account..... for nearly 90 Days!
It's a pain in the butt, however, I have a totally separate bank account, in a totally different bank for my Paypal account/activity, which is connected to a visa card that we have ONLY, to be connected to Paypal, and is NEVER used for anything else.
First NEVER write/type anything with the word "knife", into paypal..... it's either "cutlery", "camping tool", or "outdoors tool." Here's how I operate/try to cover myself with Paypal.....
As soon as a Paypal payment is in my Paypal account, the full amount gets transferred to the bank. As soon as the money hits the bank, I physically go there, withdraw it, and then go to another bank (the one where I keep my knife account) and deposit it. And I NEVER keep more then $50 in the actual Paypal account.
Doing things that way, Paypal can only freeze the bank account that is attached to Paypal (which never has more then $50 in it)..... and the only credit card they have any access to, is the one that is used for Paypal only. And in case you didn't know it, if (Paypal cannot freeze a credit card account) Paypal does a charge back to your credit card, you can dispute it, and in my case (it's only happened twice to me) the credit card company sided with me, recovered the funds that Paypal had charged the credit card, and locked Paypal out of that credit card account. Which also sucked, because after everything was done, Paypal would not allow me to connect that credit card account number to Paypal....which meant I had to cancel that card, and get a new account number/card.
Believe me Paypal IS NOT your friend! Cover your butt, or at the first opportunity, they will stick something right up it!