Paypal doesnt pull any money unless you have a positive balance in your paypal account already. that is why it is stupid to leave any money sitting in your paypal account. Once I get a payment it immediately gets transferred to my bank.
Wrong...
I had a situation very similar to the subject of this thread.
I had a buyer file a claim through PayPal for "Item not as described".
I pulled all the money I had in my PayPal at the beginning of this, same as the seller in this thread.
This, of course, caused my PP balance to become negative when PP tried to pull the anticipation refund.
Meanwhile, the buyer and I are submitting all of our reasons for why we think we're right.
But, I have a membership with Fileplanet that is paid throug PayPal.
When my monthly membership fee came due, PayPal gained access to my bank account and withdrew the balance for the claim.
Of course, I was furious and called PP.
They explained that they have a legal right to access my bank account, WHENEVER IT BECOMES OPEN TO THEM, and remove money if there is a negative balance in the PP account due to a claim.
They sided on the part of the buyer and he requested a refund.
PP required that he return the item to me, with proof of mailing, before they would refund his money. After a period of 2 weeks, he had not returned the item, and the money was returned to me.
This whole process took almost 2 months from the initial filing of the claim.
So, I do know what I'm talking about when it comes to this very situation.