(1) You said, "One of the moderators wrote: 'You can pay your PayPal credit account with funds from your PayPal balance or from a checking account.'"
To me, this says when you are paying your PayPal CREDIT balance, you can pay (by) using your PayPal balance, or (by using) your bank account.
What the moderator said was not talking about paying for goods while you are shopping; the moderator was referring to (paying) your PP Credit balance -- the amount that accumulated in your PP Credit account while shopping.
(2) You said, "I thought I WAS using my PayPal balance as I merrily shopped away on eBay".
Go to your PayPal Credit account. Click on the Settings icon (top right). On the next screen, click on the "Payments" tab (on the blue banner).
There, select your In-store and Online payment preferences. (Your purchases on eBay may have been charged to your PP Credit account because your Preference for online shopping is PayPal Credit ("checked").)
Note that one of the options on this page is "Choose a Payment Method at Checkout". If you choose/check this, you will have to choose "Pay with PayPal Balance" while you are shopping/checking out (each time you are checking out), IF the option is presented at Checkout and IF that's how you want to pay. (I believe that's the way it goes -- I've never used that setting before.)
(3) As for being a Scam... Well, figuring out how PayPal works -- with all of its many options -- takes some doing. So, take a deep breath and relax.
It seems to me, your solution is an easy one, here.
Now that you have a $36.34 CREDIT balance, open your PP Credit account and, in the left column (or, anywhere else you see it), click on "Make a Payment". I think when the screen changes, you have to select "Make a Payment" again.
Then, you get a pop-up with three questions:
---- How much do you want to pay? [A menu opens and displays (as I recall) the Minimum Payment, the full Balance owed, and "Another Amount". Choose which ever you want. If you choose "Another Amount", it will give you a place to type in that amount.]
---- How do you want to pay? [A menu opens and you can choose "with PayPal Balance $32.79", OR "your Bank Account ##". Choose PP Balance, in this case.]
---- When do you want to pay? [A calendar opens up and you click on the date you want the money to taken from the source you selected.]
Then, you click "OK", I think.
Then, your selections re-display for your confirmation. Check the info and click the "Pay $..." button and then "Done".
This will leave you with a Credit account balance of $3.55 (if there no other charges to your account). [$36.34 - $32.79 = $3.55]
You'll be taken back to your Account Summary or Statement.
At this point, you can (if you want), click "Make a Payment" again and pay off the balance, $3.55, using your bank account, by going through the same process above, OR you can leave that balance until your next statement is issued. {Make sure each month you make the Minimum Payment Due.).
Your concern seems to be with the order (or way) in which your transactions were paid. That is, you expected your PP balance to be used first, but everything was paid by PP Credit. So, now, just pay your PP Credit Balance with your PP Balance. It's easy.
(Depending on what "Payment Preferences" you chose (as described above), your future purchases will default to that method. You can change your Preferences at any time.)
Breathe. Relax. Hope this helps.
