Just a heads up. I received an email from Paypal yesterday stating their new policy.
Section 2 wording has been changed to include illegal download products and all digital products. Paypal has received numerous complaints from digital publishers of people selling their products via Paypal illegally.
"Illegally" is not only re-selling when you don't have the rights to do so, such as Master Resell Rights, Private Label Rights, Standard Resell Rights, but also selling at lower prices than allowed according to the licensing agreement.
If you are engaged in the above, you may lose your Paypal account.