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Unable to send money to some PayPal accounts via PayPal payouts rest-api

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Let’s consider I send money to a person(in United States) who don’t have a PayPal account through payouts api.

Status of the api --> 201 Created

Status of the webhook or the payout--> UNCLAIMED

In the above mentioned case, the person receives a mail that he/she received money, if that person opens a PayPal account with the same email address after that, he/she will be able to claim that money, which is ideal. Once the person creates a PayPal account and verifies the email I get another webhook mentioning the Payout had been SUCCESSFUL.

Status of the webhook or the payout--> SUCCEEDED


In the above mentioned case the money has been sent to the recipient. But, if I try to send money to the same person via payouts api(same process).

Status of the api --> 201 Created

Status of the webhook or the payout--> FAILED

This is not ideal.
When I check the payment status in PayPal dashboard, it is mentioned as Denied which means the recipient is unable to accept the payment.

So, I checked sending money to the same recipient account from another PayPal account (not via payouts api) and the recipient received that money.

Why I am not able to send money to the recipient (via payouts api) who received a payment even when he did not have a PayPal account?

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