Welcome to the boards!
When you submit a bank funded payment or an Add Funds, PayPal will attempt to debit the bank account, and will retry one more time if it doesn't go through on the first shot. If, after two attempts, the transfer still hasn't completed, a few different things can happen.
If you sent an eCheck or used an Add Funds, the payment fails completely and your balance is not affected.
If you sent an Instant Transfer, PayPal will attempt to debit the card you designated as the secondary funding source for the transaction. If the card fails, then your account balance will go negative and PayPal will resubmit the bank transfer until the negative balance is resolved. So if this is something you are looking at happening, you'll want to either beef up your bank or your PayPal in advance to avoid any issues with your bank.
Hope this helps,
Adrian
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