Ok, well your guy said :
"We offer you 70% of the revenues from your game. We keep 30%. We hold the payments until you reach $500 to keep the administration costs down. Paypal is the most easy way to take care of the money, correct."
English is not my first language, but I do not see how this statement is a suggestion. "We hold the payments until $500.00", does not suggest a suggestion. "We usually suggest $500 by default, but this is flexible." would have been a better way of stating this.
I am happy to hear about the bank transfers, PayPal is definitely not the way to do things.
Well, anyway, Nice of you to clear things up.
Please talk to your public relations department, and ask them to be a little more descriptive when people send serious business inquiries to you.
Linking people to the actual contract might be a good idea too.