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Hi, I've recently wanted to link a second credit card to my Paypal account when I came across a problem with the setup page. I put in the billing address that is used for the credit card (which is the same address as on my first linked credit card), but Paypal rejects it and says the billing info does not match the info from the credit card. I have tried three times now and Paypal has taken $1 for each attempt??? Paypal has now taken $3 from my credit card and I still have no second credit card linked to my Paypal account.
Regarding the $3 it should only be reservations on your bank. When you add a payment card it makes an authorization of $1 to see if the card is active and working. These money should be coming back to your available balance on your bank.
The name and billing address on the card should be the same as you use on PayPal.
If it still does not work I would recommend to contact PayPal customer service to check that up.