You need either PayPal as a reimbursement method or a credit card. It always gives you the choice of 2 options. If PayPal, you need to have a credit card active inside PayPal. If you don't have a credit card inside PayPal, you can't use it as a reimbursement method.
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That has never been the case for me. Just attaching a bank account to PayPal and then using the PayPal balance to pay the fees has always been enough. So again, all these replies seem very strange to me.
I want to say that you can use paypal as a reimbursement method as long as the paypal account is verified. I don't think you necessarily need a credit card in paypal.