The timing of this story could not be worse as Wikileaks is in the midst of fund raising. It is unclear why PayPal has frozen out Wikileaks other than an implication by the person who submitted the story to Slashdot that PayPal’s owners or operators take issue with the web site.
This is at least the second time PayPal has done this specifically to Wikileaks. The comment thread on Slashdot suggests that there is a clear need for more regulated and/or accountable micropayment services to prevent this sort of arbitrary interference. I agree with the need but am skeptical of it happening. Many users have boycotted PayPal for a broad swathe of reasons, even just for their transactions fees being too high. Even such direct pressure on retail usage hasn’t done much to change the state of things.
I suspect that Google Checkout may be a more reliable micropayment service but I do not know how they stack up in terms of features and transactions fees.