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The error appears because the PayPal Encrypted Website Payments feature is enabled in your PayPal account. You may turn the feature off using the guide below.
1. Log in to your PayPal account.
2. Click Profile.
3. From the Selling Preferences column, click Website Payment Preferences.
4. In the Encrypted Website Payments section, select Off.
5. Click Save.
You may also visit this link for more information about the error.