1 Get a hosting which ignores DMCA and it is not located in the EU, you might want to think of changing registrars also as some companies will go after your domain name
2 They don't use PP, that is probably the stupidest thing you could have done. People who are in that market use CPA to monetize.
3 You can't use PP, if they go after your PP you will lose it and on top of it, they will have all the info about you.
First make sure that it isn't your competition behind the email, if it is legit then you can either comply with the request or move to a host that is ignoring the DMCA. If you go with a hosting that ignores DMCA than they will go after your PP.
In my personal opinion, you have no other choice than to comply as they have u by the balls with PP. Do note that if they go after your domain you will have to transfer the domain to them and disable who is guard.
Comply make a new site and monetize it with CPA, most CPA companies make the bulk of their money from BH so they allow it even if they say that they won't.
This is basically a cease and desist letter, from here they can escalate it if you do not comply.
If they have contacted you trough whois guard than odds are it is legit.
They cannot go after your domain for copyright, they can only do that for a trademark violation - and a substantial one at that.
A lot of people get it confused, but there is a huge difference:
Copyright ( pertains to dcma, they can go after your hosting but not your domain name) - unauthorized use of their intellectual property, unauthorized redistribution of something that they created or roads or their likeness or image ( e.g.selling their book without permission)
VS
Trademark: has nothing to do with dcma, they can can file a lawsuit to repossess your domain name in the circumstance, but has nothing to do with hosting) fraudulent, and or deceptive use of their company name, most often for nefarious gain in a manner that would be likely to lead people to believe that you are that entity or directly associated with them. (Eg registering a domain name such as "amazon(dot) whatever tlds" or any variation thereof that would imply that your site was part of Amazon in this example)
Like I said, it's very easy to get those two confused but they are in fact very different, one of them you risk your hosting ( copyright, the "c" in dcma) the other, you risk your domain ( trademark)...
both can cost you your payment processor no matter who it is , whether it be PayPal stripe or a bona fide merchant account because of Visa Mastercard regulations and international copyright law.
That being said, although it is good to have PayPal as a payment option for your customers because a lot of them frankly will not buy it unless they can use their PayPal because they don't know any better and actually believe the PayPal is the safest wait for them to transact online ( nonsense, but that's what most buyers think) - I would implore you to seek an additional one or two payment options such as stripe for credit cards and depending on where your customers are, perhaps a third option as well - mainly because it's never safe to put all your eggs in one basket, selling digital Goods you are much more vulnerable to having your payment processor dump you no matter who it is, and that is a hundred times more true with PayPal - I see them as a necessary evil that like use as little as possible and only when there is no other alternative - they will freeze your money so fast it'll make your head spin and it doesn't even always require a complaint of any kind to trigger it either...
Until you secure a new host that ignores dcma and it's not in the US, and secure a backup processor I would at least make it appear as though you are complying with the request
