Paypal - Making Anyone Else Furious?

Recently, I re-opened my Etsy and Ebay stores. I've made a couple of Etsy sales, and everything went smoothly. I got paid instantly, I was able to transfer money to my bank account, things were awesome. Then, I made some Ebay sales (all my auctions ended on the same day, so there were several all at once.) and everything went to hell.

At the time of my Ebay sales, I decided to apply for a Paypal debit card, so that I could use the money sent to me instantly for shipping costs and whatnot. (Its really inconvenient to have to wait 3-4 business days for funds to transfer from Paypal to my bank account.) I was denied, which I thought was strange. It's not a credit card, it's just a debit card, that's only supposed to allow me to access funds that are already there! I figured, oh well, whatever. I also notice that my funds are on hold - Ebay and Paypal have apparently decided to team up and really screw people over now. Now, they want "proof" that the item was shipped before you can have your money. I'm not going to pay to track the shipment of a .99 cent t-shirt, that seems ridiculous! I bite the bullet and figure ok, well, when I get positive feedback for the item, then my money will be released to me for sure. HA. Despite tracking numbers on some items stating that they were delivered and positive feedback being left for ALL items funds are being held for... I still can't access my money. So really, I just paid out of my own pocket to mail free items to strangers. All I can do is hope that Ebay & Paypal give me my money, because now there's even MORE crap going on with Paypal.

The day after I applied for the debit card, I logged into Paypal and saw that my account was "under review" and I had a certain number of days to send them proof of my identity and social security number or they were going to deactivate my account. This seems entirely ridiculous to me. I have had my account with them for 7 years! Despite being really nervous about sending ANYONE my personal information, I scanned pay stubs (to prove address and ss #), my passport and AZ state ID card (to prove I'm really me), and my social security card. I am pretty appalled that they threatened to shut down my account unless I sent them this personal information!!!

Anyway. A few days later, they return my account to normal. They are still holding my funds for the Ebay sales, but I've given up on that at this point, and am trying to be patient while waiting for the money to be available so that I can transfer it to the bank. Tonight, I finally see that $11 is available and find out... Paypal has unlinked my bank account because it is "under review".

REALLY!?!?!?!? After sending all that info and being patient and cooperative for the last 2 weeks... this. They want me to fax them a copy of the bank statement with the two small deposits that Paypal made in order to link the two accounts in the first place, and A COPY OF MY ID. ARRRRRRRRRGH. I just sent them this! I have online banking, I don't get any kind of paper statements to fax them. So now they expect me to have to print out that statement, print out some Paypal-approved cover sheet, go to Office Depot, and pay $5 to fax it all to them. Money that will come out of my own pocket, of course.

I see on Google search now that a lot of people are having these issues with Paypal. I wish I would have found that out before I reopened my stores. I am so angry and offended at this point, I really just want to close everything again and stop shopping online so I can tell Paypal to shove it up their ass. But I kind of need my $50 they have.

Anyone else having these problems? Does anyone know of any other payment options to use? I love selling and buying from other awesomely creative people, but I am officially SICK of Paypal.