I have done hundreds and hundreds of paypal transactions over the years that involved chips and this is the first hint of a problem. Just for fun I looked back at the last 10 or so transactions and nearly all of them mentioned "chips" in one way or another in the transaction.
And the real strange part was that I was warned to quit violating their agreement, but they didn't give me any idea of what part I was violating. I have a feeling this is going to be a long, drawn out process.
Greg
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