i bought a couple hundred dollars worth of stuff on e-bay using and expired debit card #?

apparently i had a negative balance for a few months and they canceled my account but yet it is still registered on paypal as back up funding source. according to paypal the transaction has been processed and the guy is sending me my stuff but what happens when they realize that account does not exist anymore?

you get a bill from the bank... i think they treat it like credit... they charge you interest and it goes against your credit. i'm not sure, but because a debit card it linked to a checking account, it could also be treated as fraud since you knew the account was closed...

If you use your debit card as Credit rather than debit all the machines do is verify that the account is open/active (positive/negative balance doesn't matter) it's just like the check scanning machines at most stores. Once the charge is billed by the store, your bank puts a hold on those funds and that's treated like an actual check. The items are paid as it's a credit transaction and the bank will add that to your balance (positive or negative). All banks function differently though so you never really know. Also, banks function primarily off fee income and interest rates so the more often they can bounce stuff on you they'll do it. It's how they make their money.