This error means that the PayPal address provided cannot be verified as being in good standing by eBay / PayPal.
At the time of creating a listing, eBay confirms that the Paypal account supplied in the payment business policy is:
- Verified premium account OR
- Verified business account
Please ensure that the correct address has been entered into Settings>eBay store settings> PayPal User ID.
It could be as simple as a child account has been linked, which isn’t allowed to write transactions against the parent. It may be the PayPal account is not a business account.
In short the retailer will need to confirm with PayPal as to why it is not in good standing.
No listings can be made on eBay until this is resolved.