When you send money for pre-approved payments such as recurring payments, subscriptions, automatic billing, or installment plans, the money is first taken from your PayPal balance.
Here’s how to change the way you pay for pre-approved payments if you don’t want to use your PayPal balance:
Log in to your PayPal account.
Click Profile next to "Log out" and select Profile and settings.
Click My money.
Click Update in the My pre-approved payments section.
Click the name of the merchant for the agreement you want to change.
Under "Payment method," click Change next to the funding source you're looking to change.