Exactly this problem is happening to me. I contacted paypal a few times about this. You know what they said? They told me to use some other credit card... I went through the process of verification of my identity with paypal because my account was also limited because I kept trying to log in. After that, no change. If I keep trying to use my paypal, then I think the automated system is too stupid to recognize that it's me WITH all the 2-factor authentication methods, so I think it will "limit" my account again by locking me out of the ability to pay or get money with my account with paypal - so, the new status quo with paypal is this, and I'm effectively locked out of my own paypal.
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