I recently purchased kids toy online and paid via paypal which is linked with my bank account. There are few direct debits already setup from this account and therefore I had enough money however I forgot about this debit and I used the same account to purchase fuel later on the same day. Paypal sent me email after 3 days advising that my direct debit has been declined and I have negative balance on Paypal account now.
I admit that it was my mistake and I should not have used my bank account to pay for fuel however if Paypal's debit was not successful they should have simply declined my purchase and advise the seller to cancel my purchase.
Why they have made my account negative and what are the repercussions if I don't pay negative balance?
Bank has already charged me dishonour fees separately.
They will take your first-born as ransom.
Seriously though check the T&C but would be the same as any other biller encountering non-payment. You have to pay up to restore your account, that's all.