they also have something they call temporary hold for 21 days that they place on people who has less then 100 feedbackYes. Paypal freezes low feedback accounts.
Tips for avoiding a freeze.
Set up as a business or premier account.
Ensure to verify with a bank account.
Don't try to clean out your Paypal account when you have money in it at first. Leave some money in it. Not much, but at least 20$
Get 10 positive feedback. This is the most important part. Once you get to 10 they should leave you alone.
The contact information on your Paypal account MUST match the info on your eBay sellers account.
Call them. If you are a new seller explain your situation to them and you may get your Paypal account unlocked over the phone. DOesn't always happen but may.
Always be polite when phoning. Yelling or being rude does not work in ones favor.
If your drop shipping, sell some things around the house until you reach 10 FB.
they also have something they call temporary hold for 21 days that they place on people who has less then 100 feedback