PayPal Rolling Reserve Irks Many Business Owners

If you’re a business owner that uses PayPal, and you've noticed a “Rolling Reserve” placed on your account, you're not alone. Here's the skinny on their new policy that went into effect around the end of July.
PayPal Defines a Reserve as:

Rolling Reserve:
We'll hold your reserve on a rolling schedule. This means a percentage of the money you receive each day is held, and then released later. For example, your reserve may be set at 10% and held for a 90-day rolling period. So we'll hold 10% of the payments you receive on the first day until day 91, 10% of your second day's payments until day 92, and so on.
Minimum Reserve:
A minimum reserve is the total amount of money you need to keep in reserve. For example, your reserve may be set at $5,000.00, which means we'll hold 10% of each day's received payments (on a rolling basis) until you reach that level.

Synopsis directly from PayPal website and PayPal blog:

• PayPal may require that a small percentage of some of our sellers’ payment volume (from 5% to 20%) be held in their account for a period of time (30-90 day), sort of like a security deposit to cover future chargebacks and reversals.
• To determine when to place a reserve, PayPal looks at the merchants risk factors - things like industry categories that have higher-than-average chargebacks, or sellers who are new to PayPal.
• PayPal will reassess risk factors periodically, and if it is determined that the risk has gone down in certain seller accounts, they will release the reserve.
• "We're requiring reserves for a very small percentage of sellers – currently less than 1%." Bill Clark, PayPal Risk Team Analyst

Why is PayPal doing this?
PayPal is covering potential payment reversals or chargebacks if merchants don't have enough funds in their PayPal balance to do so. When sellers don’t have the funds to cover their transaction liabilities, PayPal then becomes responsible for reimbursing buyers.
Running the Numbers:
The end of the second quarter (June 30) for eBay/PayPal, may help explain the timing of this reserve policy. With a new financial quarter, the possibililty exists for new revenue. Utilizing information from Event Horizon and eBay's SEC (U.S. Securities and Exchange Commission) filing, 23 October 2008 10-Q Quarterly Report Form 10-Q, the following is the worse case (for sellers or best case for eBay/PayPay) calculation of "1%" per quarter.

• Active eBay users affected: 830,000
• Active registered PayPal accounts affected: 548,000
• Net total payment volume, HELD: $115,690,000
• PayPal's revenue in this case would be the interest on $450 million per year. Plus incidental fees.

This is what PayPal considers to be "a very small percentage." Additional note: I spoke with a customer service representative who said the amounts being held can range from 20-40% for 60-180 days.
Are you experiencing a hold on your PayPal funds as well? Do you think this is a good decision on their part? What other options are you considering using? Voice your opinion!