Consumer complaint received 2023-06-27
Company: Paypal Holdings, Inc
State: CO
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Money was not available when promised

Complaint:
I started an E-Bike Rental Business called XXXX XXXX XXXXand one of the pay options on my Website was PayPal. My first customer attempted to reserve a Bike using the PayPal Pay Portal on XX/XX/XXXX. I followed the PayPal online business setup and confirmation procedure and received a notification I was verified, but the {$20.00} deposit was in unclaimed status. On XX/XX/2023 I spent 3 hours on the phone with PayPal Support to see why I could not claim the {$20.00}, even being confirmed. By 2 PayPal Engineers that it looked like everything was completed to allow me to access the funds, and my business account had been verified and complete. They told me that within XXXX business hours, the issues should be resolved. On XX/XX/2023 the {$20.00} was still in the unclaimed status, and I was still unable to claim the funds so I again contacted PayPal who told me that I needed to complete the verification process. I explained that I was already verified as confirmed by 2 different PayPal Agents ( engineers ). I then asked to escalate this to a supervisor who confirmed my Business was verified, and that there was a bug affecting me and 75 other businesses preventing them from claiming unclaimed funds. This supervisor who identified herself as XXXX told me this bug would be resolved within XXXX hours. I told her I was concerned the funds would be returned to the customer as it stated clearly on the PayPal website that after 30 days, all unclaimed funds would be refunded back to the customer. I was informed that the {$20.00} in question would be flagged and it would not be refunded per this policy. She issued ticket number XXXX to track this bug to resolution. On XX/XX/2023 I again contacted PayPal because the {$20.00} funds were still unavailable in unclaimed status, and despite being reassured numerous times that the issue had been identified and actively being worked to be resolved, the {$20.00} were still unavailable to be claimed as promised several times. I then contacted PayPal again, on XX/XX/XXXX to reiterate my concern that the funds would be lost via refund due to the 30 day all funds in unclaimed stats for 30 days will be refunded to the customers credit card on file policy. Again, ai was reassured by a PayPal Agent that this would not transpire. Finally on Wednesday, XX/XX/XXXX, I received an auto- notification from PayPal that the {$20.00} had been returned to XXXX XXXX the customers ) credit card. I called PayPal on Friday, XX/XX/XXXX to voice my frustration of the deceptive communication and malfeasances in not resolving this issue prior to this unfortunate result, despite all my efforts in trying to avoid it. I was told by the PayPal Agent XXXX that nothing can be done and they refused to compensate me for the {$20.00} lost due to their direct control. I spent over 5 hours on the phone communicating with PayPal as described, and this practice would seem purposefully deceitful to delay any recourse in resolution in hopes it simply goes away. On XX/XX/XXXX, I received an auto email from PayPal that my account is now set up and ready to receive funds... They resolved the issue, but Too late, obviously. I understand {$20.00} is not a large sum of money, but it would seem that if this also happed to 75 other businesses as described on. XX/XX/2023 by PayPal Supervisor XXXX, that this unresolved bug would result in undue windfall for PayPal could be significant in the form of collected interest while these funds were in trust prior to refund or payout. Not to mention the inconvenience to all of these small businesses who had a similar experience.

Company response to consumer: Closed with monetary relief