Magento Bad Format Merchant Id error in Checkout Cart page

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I recently configured a Magento based site(CE-1.9.2.4) with Paypal with client's Business Paypal account credentials.

Now when I add product to cart and provide the "Estimate Shipping" values in cart page, I get below error:

{"http_status_code":400,"http_status_message":"Bad Request","internal_message":"Bad format: merchant.id"}

Is this error related to Paypal, but I passed credentials correctly into Magento Admin and it shows no configuration error in there.

Anyone please help me out here.

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