Paypal does have a few quirks in that area. I would say that suspension of an account over a single incident, assuming it was a low cost item, is very unlikely. I would think this company has had other incidents or similar complaints. It's hard to say though.

I'm sure almost everyone who has used Paypal as a seller, whether hosting or hard products, has had a few fraudulent orders (unknowingly charged to some ones account). The only thing that I've noticed is that they put a freeze on that specific dollar amount.

Paypal has quite a few measures in place to fight fraud, and sometimes these measures inflict hardship on some honest businesses. One of those measures locks your account (unable to receive payments) if you have unusually high transactions for a month. So that is something to consider. Also, you may only have one personal account and one business account.

Paypal is still number one, and even after hearing some of the horror stories, I still believe that they are one of the better providers.