Recently, I noticed a negative balance in my Paypal account. Wondering what could be the wrong, I contacted their customer support. It seems, when Paypal tried to transfer the amount to my bank, it bounced. That's the reason I got a negative balance in my paypal account. Actually, I recently changed my bank details and forgot to update the IFSC code. As per Paypal rules, if you don't pay the negative balance within 120 days, you would never be able to login to your paypal account. I cleared this negative balance and again in the following month, I noticed another negative balance. I contacted their customer support once again, but this time they didn't have an answer. It was a mistake, because their account section did not update my Paypal account details. Though they never admitted it. Beware, a negative balance cannot be reversed! You would have to first clear the negative balance in your paypal account, before transferring any amount to your bank account.