Consumer complaint received 2022-02-07
Company: Paypal Holdings, Inc
State: GA
Product: Money transfer, virtual currency, or money service
Sub-product: Money order
Issue: Problem with customer service

Complaint:
around the XXXX of XXXX I was approved to do business with Paypal business which is a invoicing system that allows customers to securely make payments. However they have a policy they hold payments for 21 days on new businesses that just start processing with them however it seems like a scam. The only time a merchant hold payments is when a customer does a charge back and the issue needs to be resolved. I called customer service and no one would help me. They all stated its the process and the only way to get my deposit is if the customer hit the button on their side to confirm the service is complete. My customers range from 20-85 years old and they are not techy people. Paypal seems like a scam because if they truly hold payments for 21days then why did they post my payments of $ XXXX {$150.00} transactions immediately and then a customer paid an invoice for {$330.00} and pay pal is holding it. it seems like they holding higher payments to draw interest because they took their fee out of a payment they refuse to give me. If the policy is 21 days then why didn't they hold all the payments? they are screening payments for their own benefit. my customer even sent a XXXX XXXX  and i sent it to paypal customer service and they said they got it and they cant release the payment. they kept emailing my customer trying to get him to do something that he didn't see. I felt like they embarrassed my customer and my business by constantly reaching out to my customer about going online to push a button that i know paypal could have handle on their back end. this is highly unprofessional and once they got all my documents and approved my company it should not have been any hassles with posting my customer payment. so I believe they are scamming businesses by picking and choosing what to post once is paid. I will provide the proof my customer sent but it wasnt good enough for paypal so I believe its something they are doing by watching payments. they claim its for the buyer and seller protection but how is that when the buyer signs the docusign. This causes an issue with my customer and my company, paypal is third party and they should not be reaching out to my customer wanting to ask them questions about the payment. thats personal. you don't ask things like that once your are in contact with me and you have a docusign from the customer. THATS A FORM of harrassment. They should not be allowed to question customers about goods and services if there was no complaint. They told mre the only way they can post it immediately is if they can ask the customer some questions and they do that with the previous payments that were posted. I think the pulling a scam somehow. i will post the document my customer sent to me because he didnt understand what paypal was forcing him to do and he got frustrated. Here is a statement to me from my customer. 
XXXX XXXX Sat, XX/XX/XXXX, XXXX PM ( 1 day ago ) to me My pay pal only show that it has been paid it does not show an option to confirm it From : XXXX XXXX XXXX Sent : Saturday, XX/XX/2022 XXXX PM To : XXXX XXXX XXXX Subject : PAY PAL

Company response to consumer: Closed with explanation