We've been running our live Zen cart store for 2 years now and have upgraded a few month ago to 1.38a. No problems after the update either.

However, for the last week or two, something very strange is going on: non-US customers cannot checkout via PayPal anymore. All foreign orders come in as "check/money order", which is the only other payment module enabled in the cart and it is set to only allow US as a payment zone (PayPal express has no zones set).

From talking to a couple customers, they "think" they paid via PayPal, but when checking their accounts, no money was transferred, nor does the IPN record anything.

I've checked the IPN with the IPN check tool and it works fine (Communication = ok for both CURL and fsockopen). There are no errors etc when processing US payments. I've used a test customer account with a foreign address and I get to the PayPal screen just fine. (I have not fully completed the transaction, because my PP account is US based.) Nor do I as a foreign customer even have the option to even pay via check.

I'm at loss here and I have no clue what else to check. Have there been any changes to PayPal by any chance? What else could cause this? ANY help is appreciated!

Andrea