Hi There, I just had the exact same problem. The transaction went through on my bank account instead of paypal credit. I went into PayPal and clicked on the cog for settings, then in payment preferences I made sure that store payments and online payments were checked for paypal credit. Then (and I believe this is where the problem is) I signed back into ebay and put an item in my basket and clicked continue to checkout. There is a choice of payment options as before except there is now two PayPal options! One is PayPal and the other is PayPal Credit. Click PayPal Credit and it all works smoothly. Hope this works for you. 🙂
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