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I have my PayPal account set up in my Apple ID so I can buy music, app upgrades, etc. I have two Apple devices: a new iPhone 6S and an old iPad Air 2. I recently decided to upgrade some apps on both devices. The upgrades on the iPad went through just fine. However, I'm having trouble with one on the iPhone. I keep getting an "Unable to complete this transaction" message and asked to enter my password. After I do, I'm taken to my Apple ID to manage my payments. It asks me to verify my account but doesn't say how. The main difference between the two devices is that the app upgrade on the phone is over $50.
The reason I'm here and not at Apple is because I got an email from PayPal saying "Something went wrong with your iTunes and App Store payment." and suggests I add a new method. I don't have any other methods than the debit card on my PayPal account. Is there a limit to how much I can spend with my PayPal account in a single transaction? If not, is there something I can do on PayPal's end to fix this so I can upgrade the app?
I am an app developer, and some of my customers have similar problems with my in-app purchases. These are available for 49,99€ which is a similar amount like your $50. I believe Paypal runs some automated fraud checks, and as a result some genuine purchase attempts fall victim to these checks.
Maybe it is a better idea to ignore Paypal as an App Store payment method.
I'm sorry that I cannot offer any other solution.
Other customers are using their credit card in the App Store, and they frequently had the problem that after 3 purchases (49,99€ each) their bank would block further purchases. This makes me believe there are automated checks done by banks, and Paypal certainly has similar checks in place, too.