I'm still getting the payment refused message 48 hours later. This is incredibly frustrating, I've purchased other DLC from the Paradox store as recently as June, and this remains the only instance of my card getting rejected.
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PSA: Well I don't want to be the bad guy here paradox, but as a last resort I've used silagames to purchase most of what I wanted. Unfortunately they don't have all the DLC's on sale that I wanted (specifically the EU4 DLC collection) , but I got all of my CK2 DLC. Hopefully some of you see this and can nab the deals you wanted, but their sale ends in an hour and a half.
I believe this workaround only works if you don't use a Credit Card. On the 2nd Account, try using only PayPal. Its the Credit Card system that is locking the accounts.I tried creating a second account and experience the same results. Payment refused on two perfectly good credit cards. This is highly disappointing.