I am really curious about a payment reversal in the amount of $2,500.00. I was able to get a Living Expense/Other transfer (Using a Credit Card) I made reversed because the recipient used the money for illegal purposes. I'm very grateful to PayPal to get my money back! Assuming that the money is taken out of their bank account that is linked to their PayPal account, what I want to know is if the recipient does not have all the money in their account, what happens to them? PayPal covers me but how does payPal cover the other party? IOW, will the other party actually see a negative balance in their bank account? And how exactly are they legally obligated to 'repay' the money back to PayPal or even the Bank that they have an account with?
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