Seller still paid if bank account and back up source don't have sufficient funds?

[ttz2333]

Hi - I recently paid rent to a landlord. The payment is marked as complete. 

At the time, the full amount was available my bank account, but the next morning, I saw the balance was less due to an unexpected charge.

The back up credit card would not have the full amount available either, but I immediately put more funds into the bank account.

What will happen next?

Will Paypal keep trying to charge my bank account for several days or will they now switch to the back up source, which won't have the full amount?

And if they can't collect the amount, will the payment to the landlord be reversed?

Or will my Paypal simply go to negative and I can pay it that way?

I don't want any issues with my landlord or a late charge there and I do have the money, it just wasn't available at the time Paypal probably tried to charge the account.

Please confirm that the payment will remain completed and there won't be a charge back for the landlord.

Thanks!

[sharpiemarker]

@ttz2333 

If you sent a bank payment and also have a card as back up, PayPal will processes an “instant transfer”. PayPal pays for you immediately with their funds while your bank payment is processing to reimburse PayPal. Yes, PayPal will make up to two more attempts if your bank account is insufficient initially before charging your back up card so it’s good that you topped up your bank account immediately so everything should be straight now. Just wait for PayPal to try again.

[ttz2333]

Thanks for the quick reply! - so in general, once a seller has been paid, that payment will never be reversed, even if the bank account and back up source turn out not have sufficient funds, even after several attempts? - I funded mine now, so that should be fine, but to understand how this works in general.

would the account then go negative? what would happen if Paypal can't collect the funds?

And is it handled differently if paying friends and family - or are all payments permanent once they are marked "complete".

Thanks so much!

[PayPal_JonK · Accepted solution]

Hi everyone, welcome to the PayPal Community Forum. Thank you @sharpiemarker for your assistance on this thread. Your time and expertise is invaluable. 

@ttz2333, thanks for joining the PayPal Community - these are some great questions. Regardless of whether the payment is for Friends and Family or Goods and Services, the only time a payment would be "reversed" by not being able to collect the funds from the funding source would be in the case of an eCheck. In the case of an eCheck, the funds are not credited to the receiver until PayPal receives the funds from the bank.

Otherwise, while the buyer's account may be taken negative for being unable to collect funds from the funding source, the funds are normally not reversed from the seller. If PayPal is unable to collect the funds after taking an account balance negative, the account may be forwarded to a collection agency for further action.

I hope that clears things up!

 - Jon K