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It seems that Pay Pal does perform some address validation on its end before attempting to charge the card, so if we can distinguish a Pay Pal validation error from a card authorization error (a decline), then it would be good to pass on the info to the customer with a form_set_error() like you said in the original post.
I would still be against pointing out which field was wrong in the case where the card was declined because the billing address didn't match the address on record, the CVV was wrong, the expiration date didn't match, the cardholder's name didn't match, etc.
Ubercart checks the length of the card number and validates the checksum with the Luhn algorithm, so if you enter a 1-digit credit card number in Ubercart and you should get a form error with that field highlighted telling you it's an incorrect number, just like Amazon.
I can't find that now, but let me summarize: When you log on to a computer (or a Drupal site for that matter) you are asked for a name and password. The same goes for credit card information, only more so.And this information is not random stuff like order numbers - it's name/address/phone number data that should be excessively familiar to the customer.That said, I support logging more detail in the watchdog to help the admin figure out what's going on.The message in webchick's example appears to be a validation failure rather than an authentication failure; asking for a "valid postal code" suggests that the postal code is not valid at all for the given country, rather than failing a specific test for the customer's card.Most payment gateways appear to already work to avoid fraud in the way TR describes, returning generic "not authorised" responses when the bank refuses the card, but detailed, useful messages when part of the supplied details are invalid rather than incorrect.
We do not recommend showing the short message back to the customer. But longwave is correct that in this case I had entered "12345" for the zip code as I always did, only I had chosen Canada as the country.