What happens to the funds from a Denied payment when I use a credit card or debit card?

When a credit or debit card payment is denied by the recipient, PayPal refunds the transaction fee to the card that was used. If credit is not issued or posted on your card or bank statement within 30 days, you need to contact the card issuer or bank. We don’t know when your credit card issuer or bank will complete a credit sent by PayPal. Credits can take up to 30 days, and in some cases longer, to post, depending on your card issuer or bank. 

One way to make sure that your payment is always accepted is to pay directly from your bank account.  If you do online banking, you can usually link your bank account to your PayPal account in just a few minutes.

Once you’ve linked your bank account, using it to pay for things is secure. Just like when you use your credit card, the seller never sees your account number. They won’t even know which bank you use.