I live in the EU and I have a Paypal account setup in the country that I live in. I have tried linking this account to my US PSN account so that I can buy some games here but it keeps returning an error. Is there a way to get this working?
You will need to use a prepaid visa from the US. Even though you might have funds in your paypal account, PSN requires you to link a credit card that is linked to your paypal account. So it will try to use your card which is not a US card and fail because of this. If you can get a prepaid visa online it should solve your problem.