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The email address you entered isn't linked to a PayPal account.
 

...if you don't have a PayPal account, you'll need to set one up with this email address so that buyers can pay you.

I've been trying to edit a couple of Ebay listings over the last few days, and also create a new listing, however I cannot proceed due to the above error message.

My Ebay listings have been active for a few years, and I have received payments for customer purchases against these via PayPal without problem during this time. My PayPal account has been active for over 8 years and has been linked to my Ebay account throughout this time. I have tried un-linking and re-linking the accounts however this appears to make no difference as both systems appear to see the account as already linked.

I'm currently able to purchase from Ebay using my PayPal account (Business verified) without problem, and I also receive payments on a daily basis through PayPal both from my personal selling website and my current Ebay listings. I only receive this error message when attempting to edit a current listing or create a new listing, and as such cannot proceed any further.

I've spoken to Ebay, and they can see no problem with the set-up - the email address, account details and all associated information has been verified as correct. When they attempt to replicate the issue from their side they also get the same error message. I've tried different browsers just in case there may be a glitch, however the same problem occurs.

I've been waiting a few days for response, however I have the feeling that a reply may not be forthcoming, therefore any help form you guys would be greatly appreciated in the meantime.

Kind regards, Steve.

Re: The email address you entered isn't linked to a PayPal account.
 

If you untick instant payment required this should solve the problem