This problem apparently only affects Australian PayPal merchants. Since around mid October it has not been possible for customers to pay Australian merchants unless they (the customers) have a PayPal account. There are quite a few posts already in this forum about the problem. I strongly suggest that you contact PayPal support and let them know that this problem is affecting you. Unless they hear from merchants I suspect the problem won't be a priority for them. Here is what I said in a previous post:
This apparently is an Australian issue which started in October, according to PayPal Australia support, due to some austrac requirement. But PayPal has not advised Australian merchants that this is the case. Nor is it in their updated policies. They suddenly -- without any notification or warning to merchants -- made it impossible for customers to pay with a credit card. They can only pay if they have a PayPal account which many businesses do not have. The customers still see the option to pay without a PayPal account, but after they enter their card details it then fails with a meaningless error message: "We're sorry. Things don't appear to be working right now".
Vey unprofessional of PayPal not to advise merchants of the change in policy, not to update their policies (I confirmed this with their support), and for payments to fail with a meaningless message when customers try to pay the invoice. PayPal Australia support can't provide any information on whether this is a permanent policy change or temporary. Very shabby way to treat its merchants.
