If your PayPal account has no money, it primarily affects your ability to make payments or, in some cases, can lead to a negative balance and account restrictions.
When Your PayPal Balance is Zero
Having no money in your PayPal balance means your account has a zero balance. If you attempt to send money or make a purchase, PayPal will usually try to draw funds from other sources you've linked to your account.
Attempting a Transaction with No Balance
When your PayPal balance is zero, and you try to complete a transaction, PayPal typically follows a hierarchy to fund the payment:
- Primary Payment Method: It will first attempt to use your preferred linked payment method, which is often a bank account or a debit/credit card.
- Backup Methods: If the primary method fails or isn't available, PayPal may try other linked cards or bank accounts to complete the transaction.
If there are no linked payment methods, or if all linked methods fail, your transaction will likely be declined. You'll need to add funds to your PayPal balance or link a valid funding source to proceed.
What Happens if Your PayPal Account Goes Negative?
A negative balance means you owe money to PayPal. This can occur for several reasons, and PayPal will take steps to recover the amount.
Common Causes of a Negative Balance
Your PayPal balance can go negative due to:
- Chargebacks: If a buyer disputes a transaction through their bank or card issuer, and the funds have already been spent or withdrawn from your PayPal account.
- Refunds: Issuing a refund to a buyer when you don't have sufficient funds in your balance.
- Reversals: If a payment you received is reversed (e.g., due to an unauthorized transaction or an eCheck bounce) after you've already spent the money.
- Fees: Certain fees or subscription payments might push your balance into the negative if there aren't enough funds.
PayPal's Actions to Recover Funds
If your account balance becomes negative, PayPal will:
- Attempt to Recover: Automatically try to collect the outstanding amount from any linked bank accounts or credit/debit cards associated with your PayPal account.
- Account Limitations: Your account's functionality may be limited until the negative balance is resolved. This could mean you can't send or receive money, or withdraw funds.
Consequences of an Unresolved Negative Balance
It's crucial to resolve a negative balance promptly. Failure to do so can lead to:
- Account Locking: If the negative balance, representing an amount owing to PayPal, is not resolved within 120 days, your PayPal account may be locked. This means you won't be able to log in or use your account services until you contact customer support to address the outstanding amount.
- Collections: PayPal may engage collection agencies to recover the debt.
- Impact on Credit: Unpaid debts sent to collections could negatively affect your credit score.
How to Resolve a Negative PayPal Balance
Resolving a negative balance is straightforward and important for maintaining your account's good standing.
| Action | Description |
|---|---|
| Add Money | The simplest way to clear a negative balance is to add funds from your linked bank account, a debit card, or another funding source. |
| Review Activity | Log in to your account and review your recent transaction history to understand why the balance went negative. |
| Contact Support | If you are unsure why your balance is negative or need assistance resolving it, contact PayPal customer support for clarification and help. |
Steps to Add Funds to Clear a Negative Balance
- Log in to your PayPal account.
- You will typically see a prominent notification about your negative balance.
- Follow the prompts to "Add Money" or "Resolve Negative Balance."
- Choose your preferred funding source (e.g., bank account) and enter the amount needed to cover the deficit.
Promptly addressing a negative balance ensures you maintain full access to your PayPal services and avoid potential issues.
