I got an email from an account that looks like PayPal

[Suppy1]

An email that looks like PayPal send me a message saying that my account has a small limit that can be deposited into it. It then says to ask the person who’s supposed to pay me to deposit an extra $800 to “expand my limit”. Is this a fake email?

[kernowlass]

@Suppy1 

Yes, this is how it normally works.

SCAM.

Ignore scammers that send fake Paypal emails telling you that you need to pay an upfront fee to verify/upgrade to a business account/or any other reason to accept a payment. OR they also tell you they have had to pay extra and you have to refund it. However no funds show in your paypal balance, you get fake paypal emails telling you the buyer has paid and you have to refund it before you get your payment. That refund is normally using any other payment processor but paypal eg bitcoin etc.

Any fee is auto deducted by Paypal at the same instant the remainder of the payment is credited to your Paypal account balance.

No funds in your balance = you have not yet been paid, even pending/held payments will still show in your Paypal account activity.