Is the recipient notified of a withdraw issue the first time?

[Oreo2233]

So are recipients notified of an NSF issue the first time Paypal tries to pull from my bank account? And can I change it before they try pulling again.

[PayPal_Meghan]

Hello @Oreo2233, 

Welcome to the PayPal Community! 

I understand you'd like to learn more about what happens when PayPal is notified about an insufficient funds issue. When you initiate a transfer or a payment that won't go through due to insufficient funds, PayPal may attempt to pull the payment from the same bank account again. If there's a backup payment method, a third attempt may be made toward the backup. (This third attempt would not occur with a transfer, just with a payment.) 

Each time PayPal is notified of the denied transfer from your bank, you will also receive an update on the status and what action will be taken as a result of it. For example, if another attempt is going to be made. PayPal will never charge you a fee for an insufficient funds notification, but your bank may, so you'll want to reach out to them to see how you should proceed. 

I hope this information answers your questions regarding insufficient funds transfers! 

- Meghan