Consumer complaint received 2015-07-23
Company: Paypal Holdings, Inc
State: VA
Product: Money transfers
Sub-product: Domestic (US) money transfer
Issue: Other transaction issues

Complaint:
Paypal used the a method for payment without my authorization, lack of satisfactory response and security concerns. 
I used paypal for a payment. Paypal at the time of sign up offers various payment options being bank account, credit card etc. This is based on the the understanding that the user like me can choose the desired one at the the time of making payment. However when I paid for the transaction ( Attachment XXXX ) in question it did not give me the option and instead debited my bank account. When I took up the matter with them they responded giving reference to another case number and person. Further when I responded to them ( Attachment XXXX ) highlighting the mistake and security concerns, they have not bothered to respond. Request to take it up with paypal. 
Below are the details of the communication with paypal for referenceello, I am shocked by your below response as it raises fundamental data security issues and does not even remotely address the concern raised by me in the below mail. Following are the basis :1. Incorrect Name/Case No : my name is XXXX XXXX as against XXXX XXXX, indicated in the below mail. further my case no is XXXX as against XXXX indicated in below response ( extract of original mail with case no below ). This raises fundamental question on data security by a payment provider like you. Sharing my personal data with a third party is unacceptable. Kindly clarify the oversight. 
2. When I sign up to paypal, the basis of my sign up is the flexibility of payment sources. However for below payment it did not offer me the said flexibility and without checking debited my primary source of payment being my bank account. This is unacceptable and hence I had requested reversal and it being charged to my credit card. You can not deny me the choice of selecting a payment source when it is part of the service offerred. 

I also demand compensation, as I suspect due to lapse of control at your end you have shared my contact details with a third party ( below mail is an example ). Should you not be able to provide a satisfactory answer plan to take it up with the regulatory authority like Consumer Financial Protection Bueareu ( CSFB ) and press. 


We 're reviewing your case # XXXXHello XXXX XXXX, Recently, you told us that you did n't recognize a payment sent from your PayPal account, or there was an issue with your transaction. 

Here are the details : Transaction date : XX/XX/2015Transaction ID : XXXXTransaction amount : {$98.00} USDRecipient email : XXXXXXXXXXXXWe 've asked the seller to send us more information about this transaction within 7 days. 

While we 're investigating, the money wo n't be available in your PayPal account. If the case is decided in your favor, we 'll refund you for the amount of the transaction. 

To see more details, log in to your PayPal account and go to the Resolution Center. 

Thanks, PayPalHelp Center | Resolution Center | Security CenterOn Sun, XXXX XXXX, 2015 at XXXX, & lt ; XXXXXXXXXXXX & gt ; wrote : Dear XXXX XXXX, While filing this unauthorized account use claim, you reported that you initiated the transaction, but selected the wrong payment source. 

Because your account security is our top priority, we fully investigated your Unauthorized Account Use Claim. We 've determined that this payment is not a case of unauthorized account activity, and as a result your claim has been denied. 

To request the documents that we relied on in making this decision, please email us at XXXXXXXXXXXX. You can also mail your request to : PayPal, Inc. 
Attn : Unauthorized Account Access AppealXXXX. XXXX XXXX, XXXX XXXX your request, please include your name, the email address on your PayPal account, and the date you filed the unauthorized account use claim. 
Sincerely, XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation