I've been encountering the same error-message issue for the past week, so I finally called Customer Service. I just got off the phone with a representative (who had a charming – but confusing – accent) who told me that the PayPal security system had simply identified my request as a potential high-risk transaction and blocked it. I tried several times to send about USD 200 to a friend, which doesn't readily qualify as "high-risk" in my mind... but what do I know? The representative told me that my attempted transactions did indeed appear on his screen, but none of them had gone through because of this security mechanism. He also told me that the security mechanism is supremely vague, not even divulging the reason for blocking a transaction, but he reassured me that it had nothing to do with my transaction history specifically. Apparently, it's just some strange formula that spits out a "high-risk" label. (My PayPal account and bank account have been verified; the sending limit wouldn't come into conflict with this amount. I have received payments through PayPal before, but I've never sent any money. Maybe I should break the payment down into little doses and see what happens...) He then tried to force the transaction to go through from his end, to no avail. He apologized for the annoyance and recommended that I attempt a normal deposit (without PayPal, though I don't think he outright said the words "without PayPal"). Then he wished me a happy new year. The end.
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