I have a paypal account. I am not able add debit card. I have a debit card with valid from date (mastercard) but does not have expiry date on it. When i enter the debit card details, i get immediate response that my card is invalid or not activated by the bank. But I am able to withdraw funds through ATM.
In India its not possible to do things with a debit card or a ATM card. You need to apply for a Credit card in order to add it to your PayPal.
In India, Credit card is only allowed to verify your account. But withdrawal can be done with Debit or credit card.
I have faced the same problem. When I have tried to verify my paypal account with my debitcard ( master card), it was rejected two times.Then after having correspondance with paypal ,I verified it through email account. Status shows that I could receive and pay through it. However, in case of payment - if my balance is less, funds are not accepted from bank account directly. So for safer side , now I have applied for credit card with my bankers.