This has literally happened just now. The payment for the EEA2 just failed for insuficcient funds in the account. The bank informed me instantly. I have now realised that the debit card written has not enough funds, which I have solved immediately.
I think that the application will be returned as invalid, however:
Since as of now no money has been taken from the card, I wonder how could they even take £25 if they were not able to withdraw money at all.If you fail to do any of these things, for example, if the payment submitted does not cover the full cost of your application, or fails to meet the requirements set out above, your application will be rejected as invalid.
If your application is rejected as invalid your application will not be considered and your fee will be refunded less an administration fee of £25 for each person included in the application.
On the other hand, if they attempt to make the payment once more, there will be funds since I just transfered £200.
Yes, this is a terrible mistake, specially after spending hours filling the forms and gathering the documents