I'd think that if the money is in your paypal account, you have the money.
As others have stated, I would also strongly advise not letting paypal have access to your checking account. They demanded my checking account info a few years back. I got a check from my credit card company and sent them. They can duke it out with Discover if need be. They'll not be putting a hold on my personal account.
That said, I've never had an issue with them. I believe they provide a valuable and handy service.
