Hi jtabdesigns,
Welcome to the community! 🙂
Great question! The answer actually depends on how your PayPal account is setup. Do you just have a bank account on file or do you have both a bank account and a credit/debit card on file? The answer can also change if you are using a PayPal credit card or Bill Me Later.
If you just have a bank account on file and no other accounts to act as a back-up funding source, the only type of payment that can be sent is an eCheck. eChecks are bank funded payments that take 3-4 business days to clear to the recipient. eCheck payments can also only be fully funded by a bank account.
This means that in the scenario you describe, the full $65.00 would be debited from your bank account and the $63 would stay in your PayPal balance.
If you just have a credit/debit card on file or both a credit/debit card and a bank, then the payment would use the $63 in your account and debit the $2 from your bank.
The reason the system works this way is because eChecks are not instant. Our system would not want to pay the seller $63 dollars and then wait 3-4 business days to transfer the remaining $2. We also wouldn't want to wait for the eCheck to clear before using the $63 in PayPal because it's possible those funds could be used within the 3-4 business days. Then we wouldn't have enough funds in PayPal to give the seller the full $65.
I made that pretty complicated so here's the basic answer: Any time you make a purchase, our system will tell you exactly how the payment will be funded on the page before you authorize a payment or subscription. If a portion will be funded with your PayPal balance, then it will say that on the final checkout page. In general, if the "Instant Transfer" option is available for a payment, we will use the PayPal balance first.
I hope this helps! 🙂
- Frank
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