You may want to contact PayPal and send a copy of the email you received from the buyer.
When I first started buying on eBay and began using PayPal, I paid someone for a strike and unbeknownst to me, they didn't accept credit card payments. My PayPal account showed "refused" or "rejected" (I forget which word). The seller sent me an email informing me why he didn't take PayPal via credit card payment. I mailed him a check and received the strike. PayPal kept the money in my account and I used it for my next purchase. Hope this provides some help.