I am an american citizen overseas at the moment. The last I knew, you had to be in america to open a merchant account with paypal. Does anyone know if this still holds true or an alternative method? This has really been holding me back from rolling out my website and product.
You may want to try contact CyberSource as, from my understanding, they can provide both the gateway and the merchant account for overseas clients. Likely a bit easier if you are a US citizen. Bing
If you still have an American bank account, and American mailing address, then you can use a US paypal account. The bank account still needs to be associated with the address.
PP merchant account is open to all country user. Just for example https://www.paypal.com/my/cgi-bin/webscr?cmd=_home-merchant&nav=2.0