I got this error "Payment error: LongMessage: This transaction cannot be processed due to an invalid merchant configuration. ShortMessage: Invalid Configuration ErrorCode: 10501" when trying to subit payment via Paypal sandbox.
The sandbox account has already been upgraded to Business Pro.
It was working fine before, now it gives me this error.
I had a very similar issue, other error code though. I can't help you but what helped me was phone call with PayPal. They're really helpful and managed to solve the issue, even though it was a nop related issue.
Hope this helps... MaxM
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