Money taken from bank account but still not cleared in PayPal account

[Liamwabisabi]

I bought an item off a friend and paid via PayPal. Thinking that the payment would go through immediately as I had the funds in my bank account.

I sent the money via the friends and family option but they transferred as an echeque even though, as mentioned, I had the money in my bank account linked to my PayPal.

As he needed the money immediately I decided to bank transfer the money instead and figured that once PayPal is unable to withdraw the funds from bank account as they are no longer there, the cheque wouldn't clear, and if it did by chance, he would refund me the amount anyway.

Now the payment in my PayPal account is still pending, it still hasn't cleared in his PayPal account, but PayPal has taken the money from my bank account and sent it into overdraft. 

He's unable to refund the money as it hasn't cleared in his account so why has PayPal taken the money off me if neither of us has access too it?

Can someone please explain this too me??

[kernowlass]

@Liamwabisabi 

Transfers from bank accounts are never instant, that is why when you buy something paypal credit the seller upfront for you and paypal take the wait for the funds to transfer to pay them back again, this is so you get your item without delay. (and why they call it instant transfer when its only instant because paypal credit the seller upfront).

Takes about 5 working days to transfer as Paypal use the slowest (cheapest) transfer option (electronic and not wire transfer) BUT funds normally leave your bank account from a few hours up to a few days later.

However if you are 'adding' funds to your own paypal balance OR 1 of the below options then this time you take the wait for the funds to clear as they go as echeques.

1. Card needs updating.
2. Has had a recent negative balance.
3. A recent failed bank transfer.
4. For some high cost riskier payments / transactions.
5. Friends / family payments....funded from a bank account (if you had used a card and paid a fee then they would have sent if using wire transfer instantly).

As for taking the money from your bank account when there was nothing in it, Paypal has no idea how much is in your bank account. You requested a transfer of funds to your friend and so paypal apply to the bank for the funds. If your bank refused because it would give you an overdraft then the payment to your friend would fail but if your bank allowed them to have the funds and put your account into overdraft then that is between you and your bank really.