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PayPal payment initialization is failing through Cybersource


We are trying to make first PayPal payment initialization request through Cybersource and failing with 10002 code. I have asked Cybersource support to provide details and they said that PayPal itself gives internal server error. I want to make sure that we have setup all accounts correctly.

So we have setup test Cybersource merchant account and we have linked it to PayPal developer account X which has 2 sandbox accounts: X-facilitator@... and X-buyer@... . We have given 3rd party permission ( to X-facilitator and enabled Express Checkout and all other options to allow Cybersource to make PayPal payments on behalf of X-facilitator merchant account.Is there anything else that I need to setup? I suspect that we should link not the X developer account to the Cybersource, but X-facilitator@.. merchant account. Am I right? The reason I am asking here is trying to find quick solution, because we have spend already lot's of days on supports and meetings without finding the solution.