This system is in place to allow sellers to protect themselves from unwanted buyers.
Not every sale is worth having.
The most common Blocks are against bidders who have a track record of not paying for the items they win and bidders from countries with a bad reputation for delivery of parcels.
If you have ever not paid for an item, many, perhaps most, sellers will have an automatic Block against you.
If you come from anywhere in Africa, much of Asia, most of the former Soviet Union, or South America, many sellers will refuse your business. Note that most of these countries have erratic postal systems and are not governed by the Rule of Law.
Other automatic blocks are against bidders without active Paypal accounts and specific Blocks against specific sellers who have annoyed the seller.
The Paypal account block prevents impulse bidding.
The Blocked Bidder List is used by sellers who have had a bad transaction with a bidder in the past or who foresee a bad transaction coming. I have Blocked bidders who asked questions in a rude confrontational email and also bidders whose feedback left for other sellers shows too many negatives.
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