I have exactly the same problem, I am going to the UK from the US this Christmas. I wanted to purchase from UK stores and have the goods delievered to my sister in the UK but paypal won't let me. Additionally, I have a second residence in France although all my banking is US based (I use HSBC international banking). As an international customer, paypal is becoming less of an option for me - it's a shame, I love paypal.
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