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I have contacted PayPal support, and I sent them the error like you told me to, and this is their response:

"I can attest that your account has no issue at all. The other party involved may have been incurred restrictions or limitations on their account."

What should I do in this case ? The problem is not from my side, they said.

i can't open Payoneer, i want to withdraw through PayPal :/

Admin

PayPal payouts are being processed normally on our end. The error message is clearly in regards to your account. You will have to try to escalate the ticket on PayPal to someone who is familiar with Mass Payouts so that they can help you.

(1 edit)

I also want to include, that when i got into my itch.io account → settings → Payment processors, i see this message:
PayPal (Legacy)
This is mode is deprecated for the new PayPal Commerce Platform for Marketplaces. Please reconnect to PayPal using the section above to avoid any interruptions to your payments. It is not necessary to remove your legacy account to reconnect to PayPal.

Does this have anything to do with my issue ?

Admin(+1)

Nope, that setting is for the “Direct payments” system of itch.io where you sell directly into your merchant account. Since you are using our payouts system, that doesn’t apply here.

https://itch.io/docs/creators/payments#payment-modes