Not sure what the PayPal folks are telling you, but it is incorrect. One of the reasons we put PayPal Express Checkout into PowerStore is because it can accept credit cards (among other methods). 
This is causing a lot of confusion. With PayPal standard, the customer has the option of paying with a credit card without creating a PayPal account.
From PayPal:
Don't have a PayPal account?Use your credit card or bank account (where available).
Jason says about PayPal Express:
Yes, it allows you to pay by credit card, but not without creating a paypal account. So it appears there is a difference in the way PayPal Standard and PayPal Express handles credit cards.
