One enviable business model ?


Using credit cards for online purchases is not ( really ) recommended this days and everyone should know this by now. Luckily the new rechargeable ( credit ) cards makes things easier so whenever I have to buy something online I use one of them.
Of course there's always something left after and I usually like to put that small change left to good use - like buying small things I need in my field of work and make my life easier , things like plugins ( for example ) - paying few quids for a good plugin beats the hell out of spending time making your own.
This happened last week again : had a few ( € 23.00 ) bobs left on one of my "rechargeable" cards so I thought of buying few things online - not a bother, everyone's doing it . Well as one might know most purchases online are made through PayPal - easy for all , sellers and buyers but this time I chose not to log in in (one of ) my Paypal account but just pay straight away .... big mistake.
After completing all required fields on the payment page I got this ↓
which I found weird as I used that card with Paypal before.

Being late at night I thought is my fault so I kept trying ( and trying ) considering I made mistakes completing that form .
Getting tired of this ( finally ) I took the shortcut and I decided to just log into my Paypal account and make the payment from there but ... surprise ! - I got my payment declined as "insufficient funds "( remember I had € 23.00 left and I wanted to buy something worth € 22 something ).
Naturally I went to check my balance online and guess what I got ? ↓

Which makes me wonder : if Paypal couldn't verify my card ( see pic. 1 ) how ( and why or where from ) the hell did they charge me 97 cents every time I tried to make a payment ?