This article explains how to stop receiving an error when using PayPal.
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If you have a security key set on PayPal, you will receive a "password incorrect" error every time you attempt to login to set up a new subscription. To fix this, simply disable the security key function. To do this:
Log in to your PayPal account with your Security Key.
Click Profile at the top of the page.
Click PayPal Security Key.
Select the Security Key and click Deactivate.
Your PayPal account remains secure, even if you decide to deactivate your Security Key.