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Old PayPal says Reader Damage detected. Now new PayPal reader same error message.

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Old PayPal says Reader Damage detected. Now new PayPal reader same error message.

My PayPal reader which I have used successfully many times suddenly now says 'Damage to reader detected. Contact PayPal for assistance.

 

So, I ordered a new one, brand new but from eBay. This one has the same message! WTF?

 

I did a factory reset. This does nothing. What else can I try? PayPal calling hours are closed....

 

Has anyone ever fixed this problem? The problem is everywhere but there are no answers.