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Verify your registered payment info with your Vanilla Prepaid Mastercard on their account holder's system online.
He's right if you don't have your billing info attached to the card then there is nothing for Steam to verify it against. Also, certain prepaid cards are just not compatible with steam's billing system.
I recomend logging on your bank account (if you have online banking enabled) and find information about your card. Probably your limit for online payments is set to 0,00 $/euro/zlotys/whatever. Change it to higher value - and it worked for me, I set it for like 250 euros and its ok now.
I need to add I hadn't this problem with other transactions, just Steam refused them.
Find a payment method that you can keep using, the same, so that you don't get new payment method restrictions every time.
If you used it, there's not enough money on it to work with steam. If it was specifically used BEFORE NOW and you were told that it wasn't allowed, that specific card will never work again. You'd need to try a different payment method.
bumping 7 years old thread