Form validation is broken and credit card errors are not displayed to the user

If user selects a payment processor that requires Credit Card input on the form (e.g. Auth.net) - and submits w/ missing or invalid credit card - no form rule error is displayed although the form is reloaded.

Related problem - if user switches to pay later and tries to submit - the form reloads w/o errors. If you then change radio button back to Auth.net - jQuery validate errors are displayed on billing fields. Not sure if this is why form is not submitting OR if problem is due to payment processor not being reset when user selects pay later OR ??