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Phone the business section at PayPal and speak to a person. They are very helpful and helped me through verification when I got the new little gadget for PayPal payments via iPhone.

You will have to login to access the page from here https://www.paypal.com/au/cgi-bin/helpscr?cmd=_help&t=escalateTab

They require certain documents that you upload through your account. You can still receive payments – they just block you withdrawing until it’s all verified. Mine took 24 hours.

Whatever you do, don’t click on the many ‘fake’ verification emails that come as junk mail. Always go into your PayPal account the normal way etc.