Due to increasinly stringent rules at Paypal, credit card rejection may happen with a credit card which previously accepted and worked properly, then suddenly stopped working, or worse, payment will not be accepted even if user changes or switches to any other credit cards.
There are many possible causes that can result in such credit card rejected error, and PayPal doesn’t give specific explanation on how to resolve the problem and make the payment process with the same or different credit card. Here are some explanations and possible resolutions that are suggested by users on the Internet.
Sometimes the credit card is not accepted by PayPal because the attempted card used is already tied to an existing PayPal account. If you’re using a credit card that’s linked or assigned to a PayPal account, try logging in to PayPal during the payment process. You can change the source of funds after logging in to your Paypal account and pay with your desired credit card instead of your PayPal balance.
PayPal often remembers credit card details even when it’s already been removed from the account. The card's information can also be remembered even if the PayPal account linked to the credit card is closed and deleted. In this case, try another credit card or assign the credit card to a PayPal account, and pay after logging into Paypal.
It has been observed that there is a limit on the number of times you can check out without creating or logging into a Paypal account. This also can be dependent on the amount of the transactions and the type of merchandise being sold. This restriction is said to be for security and fraud protection reasons. There is really no workaround to this limitation, but you should be able to use another credit card. If there is aproblem, you may also have to try using another email address. This issue can be resolved by registering for a PayPal account.
Closely linked to the reasons above, the transaction may raise a flag on the server to stop the payment. Two possible flags pertain to the credit card or email address. Try changing either credit card or e-mail address or both when attempting to pay again.
Try using another web browser and/or delete cookies then attempt to pay with PayPal using your credit card again.
Contrary to some of the reasons above, if the credit card has been linked to an account, but not yet confirmed, try to complete all credit card information such as the Card Verification Number or Security Code, and confirm the card by entering the PayPal code shown on the credit card statement.
In almost all cases, your card will not be denied if you add the credit card to a PayPal account, and use it as funding source to pay the transaction through a PayPal account instead of directly with your credit/debit card.