I've got a little to add. First: Thanks for your sympathy Ben. Ken and Ryan sorry to hear of your troubles. Although I've not communicated with my credit card issuer over this particular issue I don't believe that they are contributing to these restrictions. My annual trips (sometimes six months) to Puerto Rico have extended over 20 years. At times in the past they have declined to accept charges after arriving in PR, but they respond instantly to a Customer Service call and then approve the transaction. They have also frozen the card when I hop in the truck and start to drive cross country, but again a phone call and I'm back in business. Also, the next day after the Paypal troubles, I made a credit purchase directly to an online merchant, so clearly no card issues. This is all Paypal. I am very disappointed in the ability of Paypal Customer Service to resolve the problem and to even inform me of what was going on. The representatives, although pleasant and sympathetic, were useless. If they did know what the issue was they would not tell me and they professed a total lack of power to do anything. The last fellow I spoke with (the most knowledgable and the only one here in the USA) had never heard of purchases restricted to under $50 and blamed it on "foreign transactions". I don't know if you all realize this but Puerto Rico is part of the USA, passports, military service, welfare etc. Sure, fraud is rampant and I appreciate being protected, but there needs to be a way to resolve these types of difficulties.
Take Care, Eric
PS Ben, As to a lawsuit. I don't have the wear with all to pursue something of this nature. If you know an interested lawyer or want to run with it yourself, I'll make a deal with you. 30% of the first million and 60% after that. ; )