Consumer complaint received 2022-07-08
Company: Paypal Holdings, Inc
State: TX
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Problem with a lender or other company charging your account
Sub-issue: Can't stop withdrawals from your account

Complaint:
PAYPAL Case ID : XXXX Disputed amount : {$590.00} USD Buyer info : XXXX XXXX Shipping address : XXXX XXXX XXXX XXXX, TX XXXX XXXX reported XXXX XX/XX/2022 Invoice ID : XXXX Transaction ID : XXXX This is a problem related to several cases of fraudulent activity on our website ( XXXXXXXX XXXX XXXX XXXX ). This is one of the cases that was closed in the buyer 's favor with no investigation of the reported case to PayPal.

Several unauthorized purchases were done through our website without us noticing it. We sent out the items purchased to find out later they were fraudulent purchases. We reported these purchases to our website platform and to PayPal, our checkout platform. 

PayPal at that time told us the transactions looked legit and there were no claims at that time and they could not do anything. I insisted because the orders kept coming in, I reported the IP addresses as coming all from XXXX ( I reported it to them as well ) and basically I could not do anything about it. 

Then the cases against us for unauthorized activity came through, we have 2 closed cases with a chargeback in favor of the buyer and 4 open cases, there will be more coming.

After 100 min on the phone and 6 transfers, I spoke finally with a supervisor ( XXXX ) at XXXX XXXX  who noticed that the tracking number provided for the case had not been submitted to the credit institution for proof of delivery and assured me the chargeback would be credited to our account until a new revision of the case was done. That did not happen, instead, I received an email from a person in PayPal XXXX telling me that they understand we are upset and to contact them through the message center. 

The message center now tells me that the credit institution has the final saying and PayPal has nothing to do with it. 

PayPal authorized these transactions even when they did not meet their criteria ( unmatching zip code, address and/or XXXX  ) XXXX PayPal assures its clients to have high technology to detect fraud and that we can rest assured of transactions being monitored. They also encourage us to report suspicious activity and fraud for them to act in our favor. 

Not the case. They insist to treat every transaction separately and wait until the buyer places a claim. 

Meanwhile, we sent out thousands of dollars worth of merchandise to who knows who, because the addresses do not belong to the buyers. That means somebody is picking up tractor parts all over the US through this fraud. 

I hope you can get in touch with the involved parties and report that this family business is not responsible for the reimbursement of thousands of dollars to people victims of fraud. We followed the good practice to have a platform offering security and support in these cases and they failed, I am sure PayPal has coverage against fraud as well as the credit institutions.

Company response to consumer: Closed with explanation