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In the pdf FAQ linked at the bottom of PayPal’s
PayPal for digital goods” page I found this:
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17. What payment options will my customers be able to use with the Digital Goods solution?
• Credit cards
• Debit cards
• Balance
• Their bank account (if they have added a backup funding source such as a credit card to their PayPal account)
• Add cash to their PayPal account with MoneyPak
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So it appears that buyers can use either their PayPal account or a credit card.
Bookman