Consumer complaint received 2021-10-20
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Money was not available when promised — 
Company: Paypal Holdings, Inc (IN)

I sold LEGAL products on XXXX. During that time PayPal was the payment processor for all XXXX accounts and sellers were given no other choice to have payments processed for their sells. After months of selling my PayPal account was shut down and restricted ( XX/XX/2021 ). When I contacted PayPal from my phone number on profit I was questioned about a friend sending money as friend and family option on my PayPal business account. I was told that in order for friends and family to send me funds through their system I would have to open a personal account. However I was assured that it didn't appear that my account would be completely closed for that reason because I had been such a long standing customer. The following day comes and I speak to another rep who restated the same information as previous call made. This rep further stated that by the end of the day my account should be unrestricted. I wanted to make sure that was the case because I had almost 10k of products I needed to ship to customers that day. The following day being the third day I called again. This time I was given a completely different excuse on why my account was restricted. At that time I was told my account was restricted because I was selling items PayPal does not process payment for, even though it was permitted through XXXX at the time. I was informed that my funds would be held for " up to 180 days '' after that I would receive an email about how to withdraw my funds. The rep did not reference any actual transaction as being in violation nor did he mention where in user agreement from XXXX that I was not allowed to sell said products. His response was " its not illegal to sell them, we just don't want to process your payments. You can use another payment processor. '' Very rude and further in a matter of fact tone said : we will hold it for 180 days to cover any charge backs if necessary. He never mentioned policies on violation fees or surcharges. 
Within a month of the 180 days being over PayPal took {$10000.00} from my account leaving it at a XXXX balance. I was never given any warning or notice the funds would be removed for any reason. I was continually told I would receive my funds after hold period. I would have never sent that much product out, I would have refunded the customers. Now I am out of product and revenue for using a third party payment processor that has monopolize the market. When I would contact PayPal after my funds were withdrawn they would direct me to contact a team through email. The reply to my email is an automate response. If I try and contact PayPal through their website it does not allow me to make contact. XXXX literally gave no other option to process payments over their platform at said time. Further you could only sign up as a seller by having a required PayPal account. If XXXX allowed the sale the end user should not be held liable for financial loss due to XXXX service providers contradictory user agreements. Because you are using XXXX system to sign up the user agreement should be the same for any payment provider. Which after this I did continue to sell the same items over XXXX platform. My account with XXXX is still in good standing to date. It should also be mentioned that PayPal and XXXX were ending their payment processing partnership during this time. It has been reported by several XXXX sellers that PayPal just closed, restricted or refused payments during this transition.