Why Paypal restrict the PTC sites?

I have been told that Paypal will not allow anything that pays down more than one level

It is important to realise that PayPal (as well as other organisations, such as eGold) is not a bank but a payment system, moreover, their primary function and responsibility is the handling of payments FROM PayPal accounts rather than to RECEIVE payments (though, naturally, they do that as well). Many people do not perceive the difference between the two, of course, because on eBay, for example transactions take place in both directions. Recently, however, the IRS (in the USA) has become interested in the incomes of certain people and has called upon PayPal to release information about them. I believe that this is one reason that PayPal have recently made payments from certain schemes unacceptable. If you want to know what is acceptable and what is not, go to the PayPal page for your country (each country has its own laws and PayPal adjusts its policies accordingly) and look for the "Acceptable Use Policy" - you should find a link to it at the bottom, either directly or under Legal Agreements or something similar. Here is the description of what is not acceptable from the UK site: "Does PayPal prohibit transactions for pyramid, matrix, and multi-level marketing programs? Yes. To determine if transactions violate this policy, PayPal considers these factors: * Commissions offered to recruit new members * Requirements for new distributors to purchase costly inventory or "start-up kits" * Members' profits derived from recruiting new members or from the sales of newly-recruited members ("downline") rather than their own sales * Payouts from fees or contributions paid by new or existing members * Money paid into the system that is significantly greater than money paid out * Unrealistic or unsupported promises regarding profits or return on investment * Percentage of the company's goods sold by a non-distributor * Flow of money derived from new members predominantly moves "upline" * Preservation of the business rests on the exponential growth of new members or customers * Offers of speculative real estate or non-development property * Business functioning as an auto-surf investment program or a high-yield investment program * Warnings from governmental agencies about the business model PayPal defines these programs as follows. Pyramid schemes – Members receive money for enrolling other people into the scheme. PayPal considers online payment randomizers a type of pyramid scheme because the majority of commissions are paid for the recruitment of new members, and these systems typically operate by random placement within the program. Ponzi schemes – Existing members receive payouts funded by new payments into the program from new member fees or existing member contributions. Matrix programs – Individuals pay primarily to be added to a waiting list for a product. The individual at the top of the list receives the product only after a set number of people have joined after that individual. "Get rich quick" schemes – Include any type of self-employment, start-up business, or investment opportunity where the claims of profit or returns on investment are unrealistic or unsupported. Multi-level marketing programs – Individuals receive proceeds from their sales of goods or services and from those of recruited members. PayPal generally prohibits multi-level marketing programs that offer payouts to both the seller and the individual(s) who recruited the seller. PayPal reserves the right to permit certain multi-level marketing programs at its sole discretion."

That happens to me in dailyclikcs too. I don't know the problem also. In bux.to they have same problem but they did not zero my account balance and they are making ways to pay other payment method aside from paypal. I hope this problem will be solve later.

I have been told that Paypal will not allow anything that pays down more than one level