Dear Chrisch,
Thank you for contacting PayPal.
PayPal is working with American Express to enable Australian
card-members to use their American Express credit card for transactions
through PayPal. The timeframe for this is indefinite.
Until it becomes fully operational, American Express transactions
through PayPal will be declined.
This means PayPal Australia users are currently unable to transact or
add an American Express credit card to their PayPal account. You can
still add another payment method such as Visa, MasterCard or Bank
Account.
We apologize for any inconvenience this has caused and we hope to have
this resolved as soon as possible so you can use American Express card
for your PayPal transactions in the future.
Thank you for choosing PayPal.