Consumer complaint received 2024-09-05
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: Paypal Holdings, Inc (GA)

Nature of Complaint : I am filing a complaint against PayPal for failing to adhere to XXXX and XXXX regulations and engaging in unfair dispute resolution practices. These failures have caused significant delays and challenges in obtaining a refund for a returned item purchased from XXXX XXXXXXXX XXXX  through the PayPal platform. 

Details of the Complaint : XXXX. Background of the Issue : On XX/XX/year>, I made a purchase from XXXX XXXX XXXX using PayPal as the payment method. Due to misleading product descriptions and size discrepancies, I initiated a return. XXXX agreed to accept the return under the condition that I cover shipping to a U.S. forwarding address, and they would handle the shipping from there to XXXX XXXX. 

XXXX. Compliance with Return Instructions : I followed all instructions and provided the XXXX XXXX number for the returned package to the U.S. address. Despite this, I have received no confirmation of receipt or refund processing beyond the initial forwarding point. This lack of transparency has created a significant inconvenience and uncertainty about the status of my return. 

Issues with PayPal 's Policies and Non-Compliance : XXXX. Refund and Reversal Policies Not Aligned with Visa/MasterCard Regulations : PayPal 's XXXX Agreement indicates that refunds XXXX be processed to alternative payment methods if the original payment method can not be used. However, XXXX and XXXX regulations require that refunds be processed back to the original method of payment. By failing to ensure that refunds are returned to the original payment method, PayPal is in potential violation of these card network rules, causing delays and confusion. 

XXXX. Unfair Chargeback Handling and Fees : PayPal charges a fee for facilitating chargebacks, regardless of the outcome, which conflicts with XXXX and XXXX guidelines. These card networks typically prohibit charging consumers for disputing a transaction through their card issuer. This practice creates an unfair barrier to accessing consumer rights and protections under these payment networks. 

XXXX. Lack of Transparency in Proof of Delivery and Purchase Protection Program : PayPals Purchase Protection Program requires proof of delivery, including signature confirmation for transactions above a certain threshold. In my case, there is no visibility or tracking available from the U.S. forwarding address to XXXX XXXX XXXX warehouse, leaving me unable to verify whether the return is being processed. This violates the transparency required by XXXX and XXXX for dispute resolution and consumer protection. 

XXXX. Failure to Enforce Merchant Obligations and Ensure Clear Communication : XXXX and XXXX regulations require that merchants provide clear communication about returns, refunds, and chargebacks. XXXX 's vague return process and lack of accountability for shipping costs, combined with PayPals failure to enforce these obligations, have resulted in an unfair experience. This non-compliance creates unnecessary obstacles for consumers seeking fair resolutions. 



Thank you for your attention to this matter. I hope for a prompt investigation and resolution to ensure fair treatment for consumers using PayPal. 

Sincerely, XXXX XXXX