Consumer complaint received 2020-07-21
Company: Paypal Holdings, Inc
State: OH
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Money was not available when promised

Complaint:
In mid-XX/XX/XXXXXXXX XXXX XXXX started selling various new and used items on the popular website XXXX. As part of selling on the aforementioned website, XXXX XXXX XXXX was forced into using Paypal Inc. as a payment processor. ( The term forced is used here due to the fact that there is no other viable payment processor that is offered as AND to a seller on XXXX. ) On both sites the appropriate accounts were set up and operated by XXXX XXXX XXXX At various times both ( emphasis added ) organizations required verification of different aspects attributes of XXXX XXXX XXXX Normal ( and successful ) startup occurred by which XXXX XXXX  XXXX was operating and running viable accounts on XXXX and Paypal.com. 

For nearly 6 months business proceeded well. Over 150 sales were successfully completed without issue. Many of the aforementioned sales came with encouraging feedback from the customers on ebay.com platform. This positive feedback is shared and stored on XXXX as well as paypal.com. Abruptly in midXX/XX/XXXX, without warning, notice, or any other kind of commination, Paypal inc severly limited XXXX XXXX XXXX account. The result of such was that XXXX XXXX XXXX was no longer able to sell and conduct commerce on the XXXX platform. Business came to halt, and again it should be noted that this occurred without notice and without warning. Numerous requests to Paypal Inc as to what the issues were went without answer or even a reply. When a reply was given it often did not give any answers or solutions as to resolving what the issues were. Soonthereafter, Paypal Inc informed XXXX XXXX XXXX that it intendted to drop XXXX XXXX XXXX as a customer. 9 ( see attachment ) The concern of this correspondence pertains to the following issue. After deciding to no longer do business with XXXX XXXX, PAYPAL INC, PUT AN IMMEIDATE BLOCK/ HOLD ON ALL FUNDS IN XXXX XXXX XXXX. Therefore, XXXX XXXX  does not have access to the funds that are in their account. Paypal Inc. claims ( see attachment ) that they will hold all money for 180 days to reduce the risk of chargebacks and thus potential liability. Various state and federal laws and regulations do allow for such a 180 day hold. Such hold practices are based upon where reasonability is key and potential risk is thwarted. The current hold on XXXX XXXX funds are inappropriate and need to be removed and released because it is not reasonable that Paypal Inc. Is in any type of risk of chargeback. Through the several hundreds of sales that were put through this payment processor from XXXX XXXX there has never been a chargeback or any other type of erroneous billing errors from XXXX XXXX XXXX end. furthermore, many of the sales that were used to fund XXXX XXXX account have received positive reviews from such buyers. 

Furthermore, such aforementioned holds are not appropriate due to the fact that much of the money in thge account was derived from sales that have dated more than XXXX. Paypal Inc arbitrarily has chosen a 180 day benchmark for when they have claimed funds will be released. They refuse to tell me when such time frame has started or will end. ( In fact I have not been able to have Paypal Inc give me such exact dates in writing. ) All funding in XXXX XXXX XXXX account with Paypal Inc was derived from sales on XXXX. Many of the sales that XXXX XXXX XXXX had on XXXX occurred more than six months ago, therefore there is no risk of chargeback with said sales. 

It is demanded that Paypal Inc release the funds that are in XXXX XXXX XXXX account.

Company response to consumer: Closed with non-monetary relief