Funded PP means non credit card. Funded is actually using $ you have in your acct. Most people would also accept an e-check and if you have PP linked to both CC and checking acct, you can send via checking but it goes through immediately.
Paypal is like online banking that can be linked to your current bank account IRL (you can also use it IRL by getting one of their debit cards). You do NOT have to have a credit card to sign up-- you can get a regular account and simply link it to a checking account which you can transfer money from into your paypal account and does not cost you fees. If you have a credit card account, you pay fees to send and accept payments. www.paypal.com