Some months ago I permanently closed my Paypal account.
Today I tried to pay for something online at a web site using Paypal as its credit card payment provider. It gave me the option to create a Paypal account; I refused. I still had to enter my e-mail address and phone number, though.
The transaction was blocked. I then borrowed my wife's credit card (same bank, slightly different card number) and entered her personal information instead, and it processed successfully.
I haven't had any other problems paying by credit card; I just used it yesterday for a few things.
Does Paypal prevent payments through its service for people who have ever had a Paypal account and then deleted it?