PayPal amp; AMX Problems

Account Types
PayPal has two main options for collecting payments made by credit card. The first option is to place an order button on your site that links to PayPal. The customer completes the transaction on PayPal's website. An example is Express Checkout. With this type of PayPal-branded account, you will not have a problem with American Express. The second type of PayPal service is a merchant account, which means that you accept credit-card payments on your own website (Website Payments Pro) or through the mail, fax or phone (Virtual Terminal). Certain sellers encounter AMX payment problems with these merchant accounts.
History
On July 13, 2010, PayPal and American Express entered into a new agreement that includes restricted categories of transactions. Affected merchants using Website Payments Pro or Virtual Terminal must individually apply directly with AmEx to accept payments through PayPal. If American Express accepts the application, you won't have a problem collecting AMX payments through Website Payments Pro or Virtual Terminal. You can also use a Payflow Gateway account if you're accepted. If, however, the company denies your application, you can't accept payments through these merchant accounts.
Restricted Categories
If you do not sell products or services in any restricted category, then you do not have to worry about individual acceptance by American Express. If only some of your products and services are in a restricted category, then you could opt to segregate the restricted and non-restricted items into separate merchant accounts. Otherwise, a denial of your application on the restricted items would also deny your non-restricted items. At the time of publication, there are 25 restricted categories. Examples include securities, airlines, massage parlors and real estate.
Declined Transactions
If you haven't received approval from American Express to collect payments, your customers will experience declined payments when attempting to make an AMX transaction. The customer receives an error message, which could cause you to lose sales if she gets upset or is in too much of a hurry to prepare another credit card and go through the order process again.
Payment Flows
A payment flow is the process that your customers go through to buy your product. If you can't accept American Express, exclude it as an option in the payment flow. This process depends on your particular shopping cart and PayPal configuration. The PayPal "Tools" page provides details about the various ways to exclude American Express as a payment option.Another potential problem is the particular shopping cart that you use for e-commerce. If it doesn't provide a way to exclude American Express, switch shopping carts or post a message to your customers that you don't accept American Express.
Warnings
When you're opening a merchant account with PayPal, you'll see an American Express agreement. Even if you aren't a restricted merchant, you must agree to all terms of this agreement. Otherwise, you can't accept AMX payments.