my general impression is that when you set a new bank account up with paypal, it can be a differnt addres than your paypal adress and they only use the credit/debit card to track and match the address, is that right?
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That is correct.
Just make sure the CC is EXACTLY like the PP addy.
In other words the billing address of the credit card (or registered addres if a gift card) has to match the address that was provided to Paypal when the account was registered