What Happens If You Bid With PayPal amp; You Don#039;t Have Enough in Your Account?

Auctions
Different auction sites have different policies for bidders. Some auction sites have a standardized set of payment options for bidders, while others allow sellers to choose from a variety of payment methods. While some bidders may accept credit cards or money orders, some will only accept PayPal. Generally, if a seller accepts only PayPal and makes this known before bidding has ended, then the bidder is required to make the payment through this service.
PayPal
PayPal functions as an online bank account. Individuals deposit and withdraw money from their PayPal accounts, which can be used to make payments to other parties. What happens when a person attempts to draw money from his PayPal account but has insufficient funds will depend on whether he has an offline bank account linked to his PayPal account and the settings he has placed on his account.
Billing
If a person has an offline account linked to his PayPal account, then PayPal will attempt to withdraw money out of this account. If this account also has insufficient funds, then the person will either overdraft this account or the transaction will not clear. If the person does not have an offline account linked to his PayPal account, then his PayPal account may show a negative balance. However, the person can also change his settings to not allow his PayPal account to go negative, meaning that the transaction would not clear and the auction house would not be paid.
Considerations
If a person wins an auction, he is generally required to pay for the item or face some sort of penalty. If the payment does not clear, the auction house may take one of several actions. For example, the auction house may fine the bidder or, in the case of eBay, the person may receive negative feedback. In addition, the bidder will often lose the right to purchase the item.