Sorry, both Venmo and PayPal have credit and debit cards. The PayPal debit card and the Venmo debit card is by Bancorp. The PayPal and Venmo Credit cards are issued by Synchrony Bank.
I understand people have strong feelings about PayPal and their Venmo brand. It was more the other way around, PayPal didn’t support Apple Pay and Apple Wallet. But the hatchet was buried long ago.
I have all four cards and they work fine with Apple Wallet and PayPal and I can remove them and add back without issues.
Apple doesn’t control adding the cards to Apple Wallet. The issuing bank, controls the verification, tokenization and identity confirmation. Once the card completes verification, the bank or TSP sends Apple servers the dynamic token and Apple adds it to the Secure Element.
The only other party involved in the verification process is the Payment Network Operator (Visa, Mastercard, etc.). The PNO may have had a fraud alert on the cards.
I hope my explanation clears up a few things.