If a customer contacts you, the vendor, and says something about how when trying to purchase your product they received a Paypal error “The Payment Can Not be Processed Because No Payment Source is Available”, there are two reasons why this could happen.
Why did this error happen?
#1. You have a negative Paypal balance. Paypal adaptive processing does not work when you have a negative balance, so we recommend having at least $100 or more in your account at all times.
#2 Another reason can be because of the customer. Under the heading “PayPal will use” you will find a menu which normally has the preferred payment method selected. In some cases however, the preferred method is not set.
When the payment method is not set, PayPal will simply cancel the transaction when you click “Agree and Continue” and send an error email.
The Solution
To avoid this error, the customer must click on the menu under the heading “PayPal will use” and set your preferred payment method to either your PayPal account or your Credit Card.
