Something to check:
Not sure if CA Accounts have this option, US Accounts do. (Not all countries have the same features and functions.)
In your Account Profile, in My Selling Tools, under Getting paid and managing my risk, look for:
Managing risk and fraud
Create and edit controls that let me automatically accept or decline certain types of payments.
If you have that option, click on Update.
At the bottom section, there's a radio button for "Country Monitor", select that option, then click on Edit.
On the next page you can add all the countries you don't want to sell to, then below that, choose the setting for Decline and Save.
What this does is block any of the selected countries from completing the Checkout Process. Note, the country names will still be available from the country dropdown list on the PayPal Checkout Screens however, they will be blocked from completing the Checkout Process.
Should you not have that feature, another possible work around would be to use the Authorization and Capture feature. This feature allows you to either accept the transaction or not. It's a manual way to monitor your transactions. You would need to have a clear policy on your web site stating which countries you will accept. Although anyone will be able to complete a transaction, it's up to you to accept it.
Your last option would be change to Payments Pro. With Pro, you can totally control the customer checkout experience because the customer stays on your website the entire time. They are not redirected to the PayPal Checkout Screens like they are with Standard or Advanced. Pro does require a bit of programming knowledge on your end, costs $30 a month plus the transaction fees and your site has to be PCI compliant but, you totally control the Checkout Process.
