We have been expericing an odd problem with our checkout. We were using Payments Pro and then sometime last week we started encountering people calling in saying they could not checkout with their cc.
Shortly after we switched to payflow pro to help diagnose the issue, however it does not seem to communicate suspected froad updates from paypal to magetno or visa versa.
I got about 20 messages from the phones over the weekend of people who could not checkout. I have contacted paypal and our host and both are still stumped.
"Credit card type not allowed"
Try enabling logging and see if there's a debugging option that you can enable for paypal in your magento store. You'll need to zero in on the error before anybody will be able to help you.
The only thing that you can do right now is start recording the request and response data to and from paypal. Of course, you'll need to remove any sensitive information before logging the request data.
Let me know if you need help doing that. my skype id is jonathonbyrd