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Thanks for posting.
What that error message means is that the bank that issued your card are not allowing us to charge the card for authorisation. When you add a card we charge $1.00 to check the details with your bank. It is just a temporary hold but if this amount is not approved by your card issuer the card cannot be added. What I would recommend is calling the number on the back of your card. This gets you through to the card team at your bank directly. In my experience that will get you through to the best people to help.
I hope you can get this sorted.
I have only just seen Hikka's post of 22nd June and your reply. I have a similar probem. I live in Italy but have been successfully using a UK credit card and bank account with PayPal Italy for the past year or so. Recently my credit card expired and I have been trying to amend the details of the new card on the PayPal website. The only change to the card is the expiry date and (possibly) the security number on the reverse. However, PayPal will not accept the change.
Your reply to Hikka seems to indicate that this is a problem with the Credit card people. I have just been on to them and they say that it is definitely not their problem. In fact the woman I spoke to gave me the precise time when the PayPayl authorisation fee was approved, but said that it was immediately reversed by PayPal. What's going on?