My wife and I have separate accounts at a local bank. I logged into my Paypal account to transfer funds ($2400) to Paypal. Between the two accounts I had the available funds and thought that funds would be available but I was mistaken and the transfer failed. I went to my bank, explained the issue, they 'connected' the two accounts, reversed the $33 NSF charge and I withdrew the same amount in cash which left just a few dollars in both accounts. A few days later the bank notified me that (2) subsequent attempted transfers failed ($66 in NSF). I called Paypal at which time they notified me that when a transfer fails they automatically try it 2 more times without even notifying me! I had no idea! I can't even imagine why they would do that, particularly without notifying me or in some way make it know that this is their policy. When I called Paypal the last transfer was still pending. I ask him to cancel it. He said that was not possible once the "Computers were talking to each other". My own mistake started this 'transaction from hell' but their policy of attempting the transfer 2 more times without my knowledge sucks.

wow thats awful, it sounds like something they put in the electronic fine print when you agree to sign up for their services. sorry to hear that happened to ya bud

Paypal's policies seem to change daily and are impossible to keep up with.
So are you still going to be out the 66NSF fee or is your bank going to waive it?
This is how paypal screw up when you are trying to put money into your paypal account. What will happen when you want to take money out of your paypal account.
I sold an item on Ebay so i withdrew the money to my "so called" bank account, and i sent it to the wrong account number with 1 didgit wrong, i went to my bank and they said that paypal should have recognised this was a mistake because my full card number and my personal details didnt match my account number.

PayPal seems to have a lot of very fine print and as another suggested it changes regularly so there is no way of possibly knowing what PayPals rules and regulations really are. You just stumble upon a paypal "rule" once you have somehow inadvertantly broken it. It is a crazy, broken system they have. I can't seem to figure them out and I believe that is exactly the way they want it. Keep us in the dark and penalize us when they want. You shouldn't be out the extra money though in the NSF fees. Hopefully your bank can work with you because Paypal doesn't. They are excellent excuse givers and thats about it.