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PayPal.com had a rather significant outage and continuing sporadic technical difficulties this morning, which may have prevented buyers and merchants from logging into their PayPal accounts, completing a checkout, or using PayPal at all. Please see the status report from PayPal developer support below for further details:

From: http://developer.paypal-portal.com/t5/Live-Site-Status/Live-Site-874- 3-Update-Website-Payments-and-API-s-are/ba-p/146548
=======================

(Live Site-874) [6] Resolved - Website Payments and API's are unavailable - Aug 03
08-03-2009 10:41 AM

PayPal_Updates PayPal_Updates Administrator writes...

UPDATE HISTORY
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[6] Resolved: This notification is to inform you that the following issue has been resolved as of Aug 03, 2:50 PM PDT (Aug 03, 10:50 PM BST).
(Sent Aug 03, 3:38 PM PDT by KD)
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[5] Update: This notification is to inform you that we are still working on resolving the issue.
You may still be experiencing 10001 error code for DoDirectPayment API calls and slowness for other API's.
(Sent Aug 03, 2:25 PM PDT by KD)

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[4] Update: This notification is to inform you that currently our API average response time is over 10 seconds. We are working on addressing this issue.
(Sent Aug 03, 12:43 PM PDT by KD)

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[3] Update: This notification is to inform you that we have started recovering. Some intermittent issues remain which we are currently addressing.
(Sent Aug 03, 11:58 AM PDT by KD)
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[2] Update: This notification is to inform you that we are still working on resolving the issue. We will keep you updated on the status.
(Sent Aug 03, 11:25 AM PDT by KD)
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[1] Notification: This notification is to inform you of the following issue.
(Sent Aug 03, 10:41 AM PDT by KD)

EVENT DETAILS
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Service: Live Site

During the time listed below you may have or currently are experiencing the following:
Buyers may experience error "Sorry - your last action could not be completed" on trying to login to www.paypal.com.
Payments via API are intermittently unavailable.

Affected Product(s):
- Website
- PayPal APIs

Start Time: Aug 03, 10:15 AM PDT (Aug 03, 6:15 PM BST)

End Time: On-Going

Our technical teams are working diligently to resolve the issue. We will provide updates until the issue is resolved.

We apologize for any impact caused by this incident.

Sincerely,
PayPal Merchant Technical Services

Contacting PayPal
===============
If you have questions, contact PayPal Merchant Technical Services by filing a ticket under contact support (refer to ID: Live Site-874) at https://www.paypal.com/mts/.