Consumer complaint received 2021-11-15
Company: Paypal Holdings, Inc
State: WA
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
XXXX XXXX I sold a phone on XXXX and the buyer lived in Texas. He wanted to use a company called VENMO, which is a part of Paypal Inc. I do not use, nor was I familiar with VENMO and he did not have a Paypay account. So, I set up VEMMO and when you sign up, you are given two options, Personal or Business account. I am NOT a business, so I set up a personal account on VENMO. I gave the buyer my email via VENMO so that he would be able to credit me {$310.00} for the cost of the phone. I received a series of emails from VENMO stating that it would be up to 8 hours before they would transfer the funds into my VEMNO account and that I had to send them proof of tracking before they would release the funds. I then went to the USPS and mailed the phone and then sent the proof to VEMNO via email. I then got a new email stating that it would be 9 to 10 hours before they would release the funds. 

I waited 16 hours and then started emailing VENMO as to where my money was. After multiple attempts, VEMNO came back and said that my account was " limited '' and that I had to have a " business '' account. I repeatedly told them that I was not a business and they insisted that I set up one. When I refused, they then stated that the buyer had to send an additional {$300.00} and my account would automatically be set up as a business, but I had to send the additional {$300.00} back to the buyer. THIS is not making any sense to me!!!!. No where in their instructions is is clear that to use VENMO, you have to do so as a business. This is where is starts to get really squirrelly. 

The buyer and VEMNO said I had to " get '' an XXXX gift card so that the {$300.00} would be sent to the buyer. Nothing from VENMO said that I had to " buy '' a card, just " get '' it. I told the buyer that as I researched this, it mean that I would have to buy the card, using my own funds. The buyer said that was not the way it was and to just " get '' the card. I went to the store, as per VENMO 's email instructions and " got '' a card equal to the value of the {$300.00} and sent VENMO proof. In the meantime the buyer is asking me if i send them the receipt for the purchase and that was when red bells started ringing. I told the buyer that was not what the instructions said and I reminded him that I questioned whether I had to actually buy the card and he said not and to just " get '' the card and send it to VENMO. They buyer then said to just spend the money and when VENMO got proof, they would give me a total sum of {$610.00}. I got pretty upset with the buyer as that was not something i was comfortable doing and I did not have the additional {$300.00} to spend on something that was feeling like a " sting '' operation to me. Then VENMO sends me an email stating that I needed to send them the proof that I spent the {$300.00} and that they would give me a full sum of {$610.00} once I did. All the while, I am telling VENMO multiple time that I was not a business and if that was the way it was with their company, they should not be offering a " personal '' account option. 

Then.. VENMO sent me an email threating me with the FBI and added pictures of people being arrested and stated that they were going to block all my bank account and bank cards if I did not send them the {$300.00}. I refused!! This is corrosion and a scare tactic and I think an abuse of power to use the FBI to get money out of someone. 

The entire exchange was wrong on so many levels. 

I went on line to USPS and intercepted that package and I am waiting for proof that I have the phone coming back to me as of XX/XX/2021. 

I have attached the email chain with VENMO.

Company response to consumer: Closed with explanation