New account is now in Negative Balance Purgatory.

[StormyKy]

 I had to create a PayPal account so that my room mate could send me her rent while she's away on a family emergency. She told me to "Invoice" her...which I did. 

• I couldn't accept her payment until I Verified my bank account. This took 4 days, but it got done.
• I accepted her Invoice payment.
• My balance showed "Green", minus of course the PayPal Fee. NO, it did NOT say "Pending". It said RECEIVED, and showed in my Balance.
• I waited until the next day, and then initiated the transfer to my bank, as my PapPal balance was still postive and in Green for that amount. 
• TWO days later, I get an email stating that there is a 21 day "hold" on these funds - funds that clearly showed as there and "available" for nearly 48 hours prior - but I could "speed" things up for digital goods, which I've done.
• Now, my PayPal account is NEGATIVE this amount, because I began the transfer process to my bank, and PayPal LET me initiate this transfer, as I had a positive balance when I did so. So, when my room mates payment FINALLY clears, it will simply $0 out my balance, and I'll still be out this money. 
• PayPal is also demanding that -I- bring my balance back to $0 with an alternate funding source.
• I cannot stop the transfer to my bank (it is now 7 days "pending").
• I've tried calling PayPal, but they insist that I have to somehow "fund" the negative money, and both of the people I spoke to said that - according to their math - this money that I fund my account with will literally be lost in the ether, since it will simply $0 out my account and send $0 to my bank on the "pending" bank transfer.
  
  Seriously?!?!

[sharpiemarker]

The problem was that you sent an invoice for your friend to pay.  

Invoices are for receiving goods and services payments which may be subject to holds as you have experienced.  There is a friends and family option which is appropriate for situations like this, you getting paid back for rent. Next time for someone paying you back, use a personal payment money request or train your sender to send it as personal payment.

When the hold kicked in, you had already withdrew the money so PayPal had to put your available balance into the negative to put in the Pending balance.

You have a couple of options.  

Wait for the payment to clear into your bank.  Add the rent money back into your PayPal account.  Then refund the money to your friend (PayPal charges 30 cents to refund goods and services payments) and get your friend to send it as Friends and Family payment.  

Or pay the rent when the payment clears and wait for PayPal to release the 21 day hold where it can zero out your balance on it's own.

I'd choose the first option, a hassle as it is.  Whichever way, PayPal is gonna have to wait like you are.  Just don't sell anything or it will go towards the negative balance.

[sharpiemarker]

Oh so, because the balance is at negative, PayPal won't process the bank transfer?  Uh oh.  They can withdraw the bank transfer if it was still pending.  Maybe call back and ask to cancel the bank transfer as it was made too quick or in error.

[mrbadwrench51]

Do a refund for the invoice amount FIRST and start over as Sharpie suggested using the family/friends option