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I don't know what credit cards everyone else is using but mine works just fine. I have a prepaid master card through the cash store (not a gift card). I just added mine in July and haven't had any problems with using it to pay for things. Only issue is that it's not verified.
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I'm pretty sure you can only use pay pal balance or bank account to fund "gift" money, or send for personal. Or so I was told. If you claim it as "goods" or services you should be able to, or to pay an invoice.
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