I was able to resolve this error. After going the rounds with paypal Customer Service- i.e. Messaging Mario, Maria, Terence and then calling customer service and talking to Dave for about 40 minutes I got right to the root cause.
Paypal doesn't know. They can't even see the transaction is failing or erroring. They don't even know you are using it, all they see is you logging on and off.
Mario was probably the closest in knowing what is going on. He said in his message that there is a separate audit team that detects fraud and automatically shuts down the transaction and there is nothing they can do about it.
I fixed it though. I found another company that actually wants your business and it works too it is : https://www.riamoneytransfer.com/
Never had a problem and in most cases it costs less to process a payment too.
