A direct copy/paste from Paypal about Seller Reputation.
I have added the BOLD to point out points:
Seller Reputation
The Seller Reputation Number measures how many Verified PayPal members have paid that seller. New transactions are added 30 days after they occur, to ensure that the Reputation Number reflects successful exchanges.
Account Status
U.S. Users are considered "Verified" if they have confirmed the bank account they have added to their PayPal account.Verification is a positive signal to the Community that a user has complied with Community security measures.
Account Type
Accounts can be Personal, Premier, or Business. Active sellers are required to have a Premier or Business account.
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