There's various reasons for the error message:
Is your PayPal account "verified" meaning you have completed 2 of the 3 steps listed below:
* Linking and confirming your bank account
* Verifying your credit or debit card information
* Providing your social security number.
It may be the funding source - have you tried a different one ??
If your account is verified and you know that you have sufficient funds then you may want to follow-up with customer support for assistance.
