Same Issue with me, I cannot get Paypal to work with Mercari. When I've filed a case with Paypal who says it's Mercari or the particular vendor and Mercari who says it's Paypal. Doesn't matter what vendor, doesn't matter whether I use a Paypal balance or a card. It simply doesn't work. Both times it's been when I try to make an offer, they accept and it says "card cannot be used try another one"...even though a card wasn't involved.
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The merchant is seeing Paypal as blocked so unless there is a way to make the merchant active again in Paypal this is not an answer and the only way around this is to not use paypal.
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