Error with Test Transaction with Paypal: Invalid Shipping Country

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I have been running my test transaction using Paypal and an error is showing as "Invalid Shipping Address". The field that errors out is the Country. I have entered a correct US address along with the city, state, country and zip code. My site is I have checked my Paypal Settings and all credentials have been verified. Please help.


Steps Used:

1. Add a product

2. Go to Cart

3. Click Paypal and log in with credentials