PayPall card payments

I appreciate you for sharing a detailed explanation of your concern, Ross_ScopeB. I'm here to provide details on managing PayPal and bank transactions in QuickBooks.

If you've linked both your bank account and PayPal to QuickBooks, you must match customer payments made through PayPal to their invoices. This action marks the invoice as paid and records it under your PayPal account.

Since you've recorded a transfer initially, QuickBooks marked your transactions as uncategorized funds, which leads to a negative balance. To resolve this, you'll need to categorize and match the transfer. Allow me to guide you through the process.

First, record the transaction as a transfer from one account:

1. Go to Bank transactions.
2. On the Transactions tab dropdown, choose the bank account where the funds are coming from.
3. Find and select the transaction to open it.
4. Choose Record a transfer.
5. From the Transferred to dropdown, choose the account where you transferred the funds.
6. Hit Record transfer.

Next, match the transactions from the other account.

1. Go to the bank account where the funds are going.
2. Select the For review tab.
3. Click the Recognized filter from the dropdown.
4. Find and select the transaction
5. On the Action column, select Match.

These steps will make the transaction match in both accounts and balance your accounts. 

Moreover, I've included these articles to help you categorise and reconcile your transactions inside QBO:

• Categorise and match bank transactions.
• Reconcile an account in QuickBooks Online
• Fix issues at the end of a reconciliation

Let us know in the comments if you need further assistance managing your bank transactions. We're always here to assist you. Stay safe