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Using Paypal as a payment for porn is a huge no-no. They'll freeze your account immediately, and since Paypal is wholly owned by eBay, I'm sure it's a snap for them to catch it.
I used to make a decent living selling amateur VHS tapes off eBay in the late 90s. That all changed by 2002 (or so). I don't know how anyone makes any $$ on eBay anymore, since they implemented all sorts of crazy restrictions on their adult section and buried the "Everything Else" category deep into oblivion.
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