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I was given a $5 credit to use with Paypal. It was supposed to be automatic. When I purchased my EBAY item though paypal, it did take the $5 off.
Welcome to the PayPal forums! Sorry to hear there was a problem with a credit being applied to one of your purchases.
Can you supply some further details on what the credit was for? Was it part of a promotion?
Also, have you checked the transaction details on your PayPal Activity to ensure the credit wasn't used? Often times with promotions or credits, you won't see the total dollar amount change, but you'll see the credit was applied within the transaction details.
For example, if you make a $10 purchase and you have a $5.00 promotional balance and decide to fund the rest of the purchase with your bank account, the purchase amount of $10 won't change but we'll only charge the bank account $5.00. You'd be able to see that info in the transaction details.