I just had the same issue. On my Paypal account, it says that my card is linked. But then when I'm trying to transfer funds, the only option to transfer money to is my bank account. I'd click the 'Link a Card' option, I'd put in all my card details, then it would just go back to the first step of asking whether I want an instant transfer or the standard one. It's really frustrating. I hope this is just a bug because it only started happening now when they changed the UI.
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