What does this error mean?

This error is coming directly from eBay and refers to your eBay selling account. 

When you start selling on eBay, you will need to setup an automatic payment method for your selling fees. It can also be returned by eBay if you have an expired credit card designated as your automatic payment method on eBay.

How can I fix this error?

You must add a payment method in eBay for your selling fees.

How to add/modify an automatic payment method on your eBay seller account

  1. Login to your eBay seller account.
  2. Go to Payments in My eBay.
  3. Select Add payment option.  
  4. Under Select payment option, select Credit card or Bank account. (You can no longer use Paypal for paying for selling costs) 
  5. Select Continue.
    • For a credit card, enter your credit card information, and select Continue.
    • For a bank account, you'll be prompted to link your bank account, sign in or enter your bank details, confirm your bank details and select Continue.
  6. Select Preferred for selling costs, and then select Add

Further information on eBay automatic payment methods can be found here.