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Let me tell you how the paypal balance thing works. I keep a zero paypal balance. I had a frivolous claim opened against me. When a claim gets opened, ebay (I'm sorry "paypal", same difference) puts a hold on that amount. If your balance is zero, it just goes negative, and they send you threatening emails; "your account has a negative balance, please add funds". I think there was some verbage about sending to a collections agency after a while. This was about 5 years ago. They do not automatically take from the attached account. I just let it sit negative until the case was ultimately resolved in my favor.
A little background on the case, for those who might care: I sold a power supply for a phone system for $400. It was a working pull, fully tested by me, and pictured as tested with a meter showing outputs. The guy gets it, installs it in a shorted system and it won't power up (it has a self-test, and won't power up if its outputs are shorted). He wouldn't believe me, said it was DOA, and demanded his system was fine. I told him some basic things to try, but he refused. After a week, what do you know, the case was closed and I got left a positive feedback with no explanation. I guess he figured out I was right, lol.
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