Paypal card credit line aquired, now my charges are declined

[hotrod4x5]

Last week I was offered a paypal credit line, and I was approved for $500.  I always use my paypal card for everything, and the money is withdrawn from my checking account as needed to cover those "charges."  I do this so I can earn the 1% cash back, not much, but I usually get around $8-$10 or more a month.

Anyway, on to my question:  I have reached my $500 limit and today the card was declined.   Why doesn't it still approve the charge and instead of getting it from the credit line (since it is reached) instead, withdraw it from the checking account as before?

I want to be able to charge more than $500 a month on this card to earn more for my 1% back.  

Is there a setting I need to fix?

[hotrod4x5 · Accepted solution]

Ok, well since no one aswered me, I asked paypal directly.  Basically you can have only one backup method.  So now that my small credit line is exhausted, I switched back to my checking account.  When I pay off the smart connect, I'll switch back to that, and go back and forth, I guess that is the solution.