If you're receiving this error and have verified that your PayPal API permissions are correct, you may need to confirm your email address with PayPal.
To confirm your email address with PayPal:
A confirmation email will be sent from PayPal to the selected email address. Click the confirmation link contained in this email. You will be taken to a confirmation page on PayPal's web site and prompted to enter your PayPal account password to confirm your email address.