Why is my PayPal account balance negative?
If your account balance is negative, we recommend you check the History of your PayPal account to find out why.
When you have a negative balance and you receive a payment, the money will be applied toward the negative balance, regardless of the payment receiving preferences in your account.
Please add money to your account to restore your PayPal balance as soon as possible. You can do this through the Wallet of your PayPal account. If your account has a limitation and this is not possible, go to the Resolution Center in your account and follow the steps provided.
For more information on this, click Legal at the bottom of any PayPal page, then User Agreement for PayPal Service.