I'm trying to payment from sandbox buyer account to sandbox business account. I got the error
Currently PayPal accounts in India are only able to send payments. This recipient is not eligible to receivefunds.
This is my html form:
<form name="_xclick" action="https://www.sandbox.paypal.com/cgi-bin /webscr" method="post">
<input type="hidden" name="cmd" value="_xclick">
<input type="hidden" name="business" value="[email protected]">
<input type="hidden" name="currency_code" value="USD">
<input type="hidden" name="quantity" value= "5">
<input type="hidden" name="amount" value="1">
<input type="hidden" name="shipping" value="0" />
<input type="image" src="http://www.paypal.com/en_GB/i/btn/x-click-but01.gif" border="0" name="submit" alt="Make payments with PayPal - it's fast, free and
secure!">
</form>
solution is create new account using Sandbox->Accounts->Create Account. Note the important part is to use United States in country.