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I recently had a situation where a buyer on eBay initiated a return, and eBay held the money from my PayPal account. Some other charges went through and because an eBay hold is not considered a normal charge my account went into the red. Because this is a hold, it didn't bother to transfer funds from my checking account to cover it, nor did it bother to send a notification e-mail to inform me the hold put my account in the red.
Here is where PayPal logic falls apart. They don't consider a hold to be a normal transaction, but the effect it potentially has on your account (goes negative) has consequences. So this is happening without my knowledge, and a subscription payment comes due, is pulled from my business checking account, and I don't think twice about until the vendor starts sending me late payment warnings. I'm confused because I see the payment was taken from my bank account and posted.
I finally check PayPal to discover the payment to the vendor is held because the account is negative. So after a bunch of arguing with a PayPal employee who just wanted to pass me off to eBay was I to discover that A) eBay holds will not trigger any kind of notification e-mail, even if it puts your PayPal account in the red B) they will not automatically pull funds from your bank account because its not a normal "transaction" c) They will block/delay any other transfers (but they will take your money and hold it) until the account is resolved. All this and no notification or warning of any kind.
I don't think its too much to ask, that if the account is in the red and that alone will put other transactions on hold, I should get an e-mail so I can act to resolve the issue. I hope PayPal does something about this.
I never had the same problem you had.
did you sell something on Ebay?
are you New to Paypal?
are you a New Seller on Ebay?
let me know & I might have a better answer for you friend.
Normally if you have a negative balance and try to 'buy' something then you will see during the checkout process that your negative balance has been 'added' to your purchase price and you have to authorise both purchase and the clearing of that negative balance OR you won't be able to purchase the item.
HOWEVER as yours was an already authorised subscription then paypal just added the negative balance cost to that price as you would then automatically authorise both payments............unusually done, not heard of it before but can see why it happened.