iTunes Won't Let me Re-Add Paypal

I've had this same problem for the last week. Cancelled my old pay-pal account and set up a new paypal account-verified and made other purchased via the new paypal account and now itunes won't update after I accept an itunes billing agreement on paypal. Created a ticket with apple,got a canned response showing me the set up steps -replied back that I understood the process and was still having errors- and received this response from apple on 12/10/10
Apple is currently working toward a resolution for the issue you have reported. You will receive an email after the matter has been investigated and further information is available.
Spoke with Paypal and they acknowledged that there was a problem -made it seem like an apple issue.
Sent another email to apple today...no repsonse yet.

Let me know if you find a resolution and I'll do the same

Same problem here on both iTunes 10.0.1, 10.1 and 10.1.1

Message was edited by: brianjones2007

Below is the 3rd response from Apple support. Still no Paypal access.

Is anyone else having any luck getting this resolved?

*as you are unable to setup PayPal as your payment method, you can use other methods for making payments.*


*You can use any of the following payment methods to pay for your iTunes Store purchases. Please note up front that prepaid credit cards from Visa, MasterCard, American Express, and Discover may be rejected if you try to add them to your account.*

*Also, please note that if the iTunes Store for your country only sells applications, you will only be able to use a credit card (Visa, MasterCard, and/or American Express, depending on the country). You cannot use Gift Cards or PayPal in these countries, and you will not be able to gift items.*

Visa
MasterCard
*American Express*
Discover
PayPal

*You can purchase iTunes Gift Cards at many retailers in your area and also at any Apple Store:*

* http://www.apple.com/store*
* http://www.apple.com/retail/storelist*
800-MY-APPLE

*For more information about the App Store, visit:*

*App Store Frequently Asked Questions (FAQ)*
* http://support.apple.com/kb/HT2001*

*Thank you for your interest in the iTunes Store. I hope this information has been helpful.*

I have a very similar problem. I tried to change my payment method to Paypal in the iTunes store account settings. I am prompted to confirm via Paypal, and can successfully do so. When I click the link to go back to iTunes, nothing seems to be updated—I'm still using my Credit card to make payments. How do I change to Paypal, which is my preference. Help!

I have this exact same issue. I'm not sure why this thread got marked "answered" as there's no solution posted here.

Same issue here - I originally had a VISA card set as my payment method, but wanted to switch to PayPal. I follow the prompts, am taken to PayPal, and ultimately back to my iTunes billing information, where it asks me to go through the same steps, behaving as if it is "caught in a loop". Apple Support e-mail reply said this is because I am not using my OS's default browser. I replied saying that's not correct (I am using Safari), and have not had any response yet.

While I have the same problem and have heard nothing back from Apple support I noticed that you are not offered PayPal as a means of paying for a purchase using the App Store on the iPhone. Could these two issues be related?

I may have figured out a workaround to solve this problem - I was able to change my default payment method by logging in via the App Store. Afterwards, I checked my iTunes profile and it now shows Pay-Pal as my default payment method.

While logging into the app store did not work for me (there was no PayPal icon to select) I did try using another computer with iTunes installed. It seemed to work but I forgot to click done at the end. When I went back to my computer I tried it again and this time it worked. So it seems as if they fixed the problem and you can select PayPay, get there and back, and iTunes is now happy.