Why is my PayPal account balance negative?
PayPal sellers are not automatically protected against transaction reversals, such as chargebacks.
PayPal may use funds from any currency balance to recover amounts owed to PayPal 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 ACH or check withdrawals may be canceled on the account.
Any payments received for an account with a negative balance will be applied toward the negative balance, regardless of a member's Payment Receiving Preferences.
For more information on this and other PayPal policies and procedures, please review the PayPal User Agreement
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