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I am facing the exact same problem have been paying Shopify to find a solution to this problem but with no resolution for last months. I have reached out PayPal with not help. Please some help us here ..
I have also got this types of issue and tried to change all the settings as per suggestions but its not gone.
After that I changed website used currency USD to INR then re-tried and now it's working. So I'm thinking that integrated payment currency and receiving account country currency must be same.
Well it's solved for me but logically this restriction is wrong. Please do any thing for this issues Paypal Developer Community.
@khilendra Your approach works but now all my products appear in INR whereas most of my customer are US based. This affects buyer behavior. Any solution such that we can display and process payments in USD?