For Example, I have a customer in Kilkenny Ireland. There address is Abbey Bridge, Dean Street, Kilkenny Ireland. They do not have a state. I have to turn off require Street Address and Postal Code in order to process their card.
Your country choices only allow the US and Canada. I can't put their address in their customer record because it requires both a "State" and a "Postal Code". Perhaps election of a particular country code modify your code to allow Postal Codes and States or not.