I have a customer who is trying to sign up for an account with us and who gets the following message when clicking the "pay now" button in paypal:

"The selected credit card is invalid. Please use a different funding source."

I have contacted Paypal about this but they are no help at all and simply list the accepted credit cards.

The customer assures me that his credit card is valid and not expired and that he has entered the correct information. He has tried this several times now and keeps getting the same error every time.

As far as I can see, the problem doesn't really lay with Paypal but either with the customer's card or his bank.

Has anyone encountered this kind of problem and what can be done about it?

We have this problem everyday with PayPal, and the problem is paypal! and not you or your customer. After being on the phone with paypal everyday they tell us the problem lies with customers that have used a credit card at paypal prior to you and paypal ac**** holders presenting a card using website payments pro where that card is also connected to a paypal account. Paypal says they're working on it.

Thank you for your reply.
It's good to know the source of the problem.
But at the moment it can't be solved then? I suppose the only option would be to use another payment gateway then.

We do over 7K a month with PayPal and have just started using payments pro and are looking forward to moving completely to PayPal so when can get the 2.2% rate. However, PayPal is not making that very easy.

This does not sound like they are using Website Payments Pro. If the customer has logged in to a PayPal account and gets this error when they click the "Pay" button, it is an issue with that customer's card or account. PayPal support would not be able to assist you (the merchant) with this problem; the customer would need to contact PayPal support directly.