Why is my PayPal account balance negative?
Your PayPal account balance could become negative if your transaction is reversed for any reason, such as a chargeback or a lost claim, and there aren’t enough funds in your account to cover for the amount. Please add money to your account to restore your PayPal account balace as soon as possible.
If a transaction is reversed for any reason and isn't eligible for Seller Protection, you must reimburse PayPal for the amount of the reversed transaction, plus any associated fees incurred by PayPal. PayPal sellers aren't automatically protected against transaction reversals such as chargebacks.
If you have a negative balance in your account, we may set-off the negative balance with any money you receive into your account or with the money you have in a different currency balance. Pending withdrawals may also be cancelled on the account.
For more information about this and relevant procedures, please review our User Agreement
Learn more about managing customer concerns to reduce the risk of negative balance.