This is from the PayPal website. (boldface added by me for clarity)
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PayPal Acceptable Use Policy
This Policy was last modified on October 16, 2003.
The Acceptable Use Policies below cover items bought and sold using PayPal, as well as any items sold or advertised on a website listed in PayPal Shops. Any Shops found to be violating these policies will be removed from the PayPal Shops directory. PayPal customers are ultimately responsible for making sure that the transactions they enter into using PayPal are legal. In addition, violation of these policies may result in your account access being limited or your account being closed under the terms of the PayPal User Agreement, regardless of whether the violation takes place through eBay or another online marketplace, through the seller's own website, or through any other forum. In all transactions, sellers must clearly and accurately describe the goods or services they are selling. If you encounter violations of the Acceptable Use Policy, please report them to PayPal immediately.
Firearms, Ammunition, Replicas, and Militaria Policy
You may not use PayPal to sell any firearm manufactured after 1898. Certain related items and high-capacity ammunition magazines are also prohibited, as described in more detail below. In addition, it is the responsibility of users to abide by all applicable laws when dealing with the sale of permitted antique firearms, ammunition, replicas, militaria and other associated items.
What is not permitted?
Firearms
You may not use PayPal to sell or advertise any firearms produced after 1898. This includes all "pre-ban," sporting, collectible, and curio and relic (C&R) firearms, regardless of their present capability to fire a shot.
Related items
In addition, you may not use PayPal to sell or advertise kits (that can be used to create a firearm) or illegal firearm components such as silencers, converters (which converts a firearm to automatic capability), and short barrels.
Ammunition
You may not use PayPal to sell or advertise high capacity magazines (magazines that can hold more than 10 rounds). In addition, sellers of other ammunition with propellant (such as gunpowder) are responsible for abiding by all laws and postal regulations.
Ordnance
In general, you may not use of PayPal in conjunction with the sale of ordnance (military weaponry, ammunition, and related parts) unless you can provide official documentation from the U.S. Bureau of Alcohol, Tobacco and Firearms (ATF) stating that the item is unserviceable or demilitarized. Contact your local ATF office for more details on obtaining such documentation. You can also visit the ATF website for general information about firearms laws.
Grenades
You may not use PayPal to sell grenades, including metal military practice grenades, rifle grenades, dummy grenades, grenade launcher attachments, and mines. However, such items will be permitted if they are a relic, curio, memorabilia, or display item that is filled with a permanent inert substance or that is otherwise permanently altered in a manner that prevents ready modification for use as a grenade.
Replicas without proper markings
You may use PayPal to sell firearm replicas, look-alikes and imitations as long as they comply with Federal and state laws that require such items to have clear markings permanently affixed to the weapon. The most common requirement is a blaze orange plug inserted in the barrel of the item. This law applies even to novelty items, such as cigarette lighters, that are designed to look like firearms.
What is permitted?
You may use PayPal to sell antique firearms (before 1898) and most legal firearm components. This includes firearm related accessories, such as holsters, scopes, and ammunition without propellant.
Blank guns, replica or imitation guns, paintball guns, and "airsoft" guns may be listed provided that:
The item does not, and cannot be readily altered to, shoot a lethal projectile
The receiver is not a firearm as classified by law. See U.S. Code Title 18, Section 921
The replica or imitation gun has the legal markings required by law AND blank ammunition is not included in the sale. See U.S. Code Title 15, Section 5001
Even if the above conditions are met, PayPal does not permit the advertisement or sale of antique firearms or legal firearm components products on websites listed in PayPal Shops.
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Well Buckaroos & Buckarettes, that sure looks like they mean you can't buy and/or sell guns and use Pay-Pal to pay for them.
But then maybe I can't read English.
Either way I'll never again use Pay-Pal they're a bunch of CROOKS and they can sure mess up your bank account. I learned this the hard way.