I believe you're looking at the error# 580036 - which is generic decline error message. This means that PayPal has tried to contact the issuing bank to collect the funds, but the payment was declined. To list a couple of reasons:
- Usually because there aren't enough funds available
- it may be down to security algorithms within the bank.
- Certain card issuers will decline certain Merchant Category Codes (e.g. Adult Content) depending on the card being used (e.g. Business Credit Cards)
When you create a Pre-Approval, you're creating a payment agreement with the PayPal Account, but there is no direct contact with the issuing bank at this point. As such, if the Pre-Approval fails at this point, the merchant needs to get in touch with the buyer and either agree on a new form of payment or clear the issues on the account.
The credit card linked to the respective PayPal account is valid nonetheless.