Why is my PayPal account balance negative?
If a transaction is reversed for any reason – and there is no Seller Protection Policy for that transaction – the seller must reimburse PayPal for the amount of the reversed transaction, plus any associated fees incurred by PayPal.
PayPal sellers are not automatically protected against transaction reversals, such as chargebacks.
We may use funds from any currency balance to recover amounts owed for chargebacks or for any other reason. (A chargeback or reversal occurs when a buyer rejects or reverses a charge on his or her credit card.) Pending withdrawals may be cancelled on the account.
Any payments received for an account with a negative balance will be applied toward the negative balance, regardless of your Payment Receiving Preferences.
For more information, please review our User Agreement