Consumer complaint received 2020-02-21
Company: Paypal Holdings, Inc
State: WA
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account

Complaint:
On XX/XX/XXXX I was informed by PayPal that my business account had been " limited '' for a change in activity. They asked me to submit my Driver 's license and Proof of fulfillment for my services. I happily obliged. I was still accepting payments from customers interested in my services. 
Then I was told on the XXXX of XXXX that my account was permanently banned, all my funds seized and was told, " You'll be able to withdraw money from your account within 180 days.We 'll email you when it's available. We just want to make sure that you have money in your account to cover any payment reversals. '' I submitted an appeal on XX/XX/XXXX and was answered by an automated email that did not address what occurred.Then sent emails to as many email addresses I could find for PayPal. I was met with no response. 

I informed them that I understood PayPals need for holding funds for credit card chargeback purposes, however a review of my account history since its onset would reveal a very low chargeback rate as well as a very high customer-satisfaction rate.I am a an entrepreneur that offers XXXX XXXX XXXX services. I offer digital services to help my client 's social media presence grow. Inevitably our methods do not produce the desired results for ALL our clients, for a myriad of reasons ( their social media content isn't attractive to the market, competition is strife in their category, etc. ), thus the request for a refund/chargeback is understandable.Our Terms and Conditions clearly explain our services, terms, refund policy and protect our work. 
I have processed and served over 13 clients already through their platform and none filed a complaint or refund/chargeback request. I recently had 3 clients request refunds which I dealt with amicably via the resolution center.Although a few clients were not satisfied with their results, the service was still executed thus payment was deserved. This was attested to by PayPal itself, via the resolution center, when it ruled in my favor in disputes with one of these customers/buyers ( this specific incident occurred on XX/XX/XXXX ). They allowed me to keep that payment for my services after they did their investigation.Then all of a sudden my account was banned after reviewing the information I gave them. 

I feel that any reasonable person would conclude that closing my account for a non-fraudulent violation of PayPals Acceptable Use Policy is excessive That may be their decision to make but then, withholding my entire balance for 180 days is excessive and can even be viewed by some as punitive or an unnecessary abuse of power and perhaps even contrary to the laws of some states. That being said I told them that I have no problem with leaving a balance for credit card chargeback or refund requests for the inevitable nature that some new clients may feel that the services did not work as desired for them and achieve their goals. This would cover the new clients that have recently signed up and could potentially not be satisfied with the services and may request a refund/chargeback, which I would then handle with the resolution center and follow all of PayPal 's instructions. 

But to hold the entire balance, which includes payment for services already executed for clients that have been satisfied months ago, is wrong and unnecessary. It effects my livelihood as I am an entrepreneur that relies on this as my means of income. A 180 day period would wreak my finances and leave me unable to cover my basic living expenses. 

I would like my funds immediately released as I am a merchant that sells a service that some clients inevitably may be unsatisfied and will have to deal with refund requests, but I do not deserve to be punished and all my income held, even income from clients long satisfied. This is unjust.

Company response to consumer: Closed with explanation