It sounds like your paypal acct is setup to take from your checking instead of paypal credit.  Look into that first.

What is PayPal Credit?

When you choose PayPal, you still have to close where PayPal gets the money from. Your default choice might be your linked bank account. If you want to use your Paypal balance, you have to select it specifically, and even that has to have a backup card or account in case you don't have enough in your balance. For me, it looks like Paypal has started calling it my PayPal debit card or something, instead of "paypal balance."

PayPal Credit is a credit card thing I think. I can still send and recieve money with my PayPal account, but the trouble is I want to pay with my balance on eBay. eBay is the only site where this happens with my payments. I went to "my eBay", I went to the payments section, and it has PayPal lit up as the preferred source of money, but if I try to buy something off of eBay with PayPal, it goes into my bank account instead.

Is your question about eBay or PayPal? The two aren't related.

14 hours ago, Gamegearguy said:

PayPal Credit is a credit card thing I think. I can still send and recieve money with my PayPal account, but the trouble is I want to pay with my balance on eBay. eBay is the only site where this happens with my payments. I went to "my eBay", I went to the payments section, and it has PayPal lit up as the preferred source of money, but if I try to buy something off of eBay with PayPal, it goes into my bank account instead.

I bet it's still going through Paypal, it's just Paypal getting the $$ from the bank instead of ebay. Check what your default payment is in paypal. And then next time you buy something with paypal, go real slow and read every page that comes up.

This same thing has happened to me, Paypal doesn't always default to your balance.