First, I truly hate anything that negatively affects the 2nd Ammendmant. That does not mean that I boycott everything. It's a free country and several of us have fought for that. Unfortunately at this time, paypal is the convenient online payment method. It's not without it's flaws, I agree, and I don't agree with all of their polices.
I can't ship a handgun through the post office. Do I stop using the postal system?
Second, I truly hate spreading myth and unsubstantiated hearsay.
Direct from their website on acceptable use policy:
What types of weapons and knives does PayPal prohibit? Question : Answer : PayPal prohibits transactions for certain hand weapons or knives that may be illegal or restricted in some jurisdictions.
Weapons – PayPal generally prohibits transactions for these types of weapons:
Nunchaku
Brass or other metal knuckles
Leaded canes, staffs, crutches, or sticks
Zip guns, shurikens or throwing stars
Hand grenades or metal replica hand grenades
Billyclubs or batons, sandclubs, sandbags, or slungshots (also known as saps or blackjacks)
For other hand weapons, sellers must ensure the weapon is lawful in both the buyer's and seller's jurisdiction before completing the sale.
Knives – PayPal generally prohibits transactions for switchblade knives and disguised knives. A switchblade is any knife resembling a pocketknife with a blade that can be released automatically or by use of a trigger. Other names for switchblades include spring-blade knives, snap-blade knives, gravity knives, and butterfly knives.
A disguised knife is a knife designed to look like a harmless item. Examples of disguised knives include belt buckle knives, cane swords, shobi-zue, lipstick case knives, air gauge knives, and writing pen knives.
Other Related Items – PayPal prohibits transactions for destructive devices and the sale of military equipment or supplies that violate laws or regulations in the buyer's or seller's jurisdiction.