Consumer complaint received 2021-02-27
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc (MA)

My Paypal account ( as well as my fiance 's ( same address ) ) was banned as a result of a dispute related to a funds loading issue in-store at XXXX XXXX that took place on XX/XX/XXXX and XX/XX/XXXX. We used the " in-store barcode load '' function offered by PayPal to load money into PayPal at the cash register at XXXX XXXX in XXXX, MA. However, on both days listed above, two {$500.00} loads failed to process for two of the PayPal accounts. This resulted in a shortage of {$2000.00} total ( {$1000.00} in one account, and {$1000.00} in the other ), since even though the money was never deposited into 2 of the 5 PayPal accounts each day ( the fifth account belonged to my brother, and my fiance and I had two each -- a business and a personal, within the PayPal terms and conditions ), the charges to my credit cards still posted from XXXX XXXX. 

Since this is a third-party service through XXXX XXXX, but used by PayPal and transacted by XXXX XXXX, I initially tried to resolve this with XXXX XXXX, but they did not have any cash overrage at the register and could not trace the missing funds and stated the transaction posted successfully on their end. This took place in-store on XX/XX/XXXX with a conversation with the front-end manager, who said they would still look into it with their corporate team but never had a follow-up from them at this stage. That physical store location is permanently closed now. 

Then, I tried to resolve the issue with PayPal, by contacting them via their Message Center ( since I was unsuccessful at getting ahold of anyone via phone ). This conversation took place in the first week of XX/XX/XXXX ( see transcript attached ), but also provided no results because I was told to contact the store again. I believe this is when my account was initially and erroneously flagged for " fraudulent activity '' or " risk ''. 

I then tried to call XXXX XXXX, the third-party processor for this type of transaction, but could not get ahold of a representative over the phone or via any other means, who handles this type of issue. I attempted an email discussion with XXXX XXXX on XX/XX/XXXX, but it provided no results since they were " unable to research the claim ''. 

I was out of the country in XXXX from the last week of XXXX until XX/XX/XXXX. Upon checking my PayPal account status, after inquiring about the issue of the missing funds to XXXX XXXX, XXXX XXXX and PayPal, I received a notification on all 5 accounts that were loaded with funds at the register at XXXX XXXX, stating that we could no longer use those PayPal accounts -- they had been permanently limited. There was no fraudulent use associated with the accounts, and the accounts were abided by the Terms and Conditions and monthly loading limits ( {$5000.00} for each account ). PayPal closed all 5 accounts on XX/XX/XXXX. One of the 5 closure emails sent on this date is attached. I have no doubt this was related to the missing funds inquiry and my persistence to trace back the missing money. 

As a last resort, with many weeks having gone by since the missing funds, I submitted a chargeback to my credit card on XX/XX/XXXX. The chargeback was declined by XXXX on XX/XX/XXXX ( see attached ) because XXXX XXXX initially ruled the purchase as " gift cards '' that were " non-refundable '', and stated they were " activated successfully '' despite the evidence that they did not post to the PayPal accounts. 

I called the Accounts Receivable department at XXXX XXXX, and worked with an employee on their corporate team and forwarded her the dispute documentation on XX/XX/XXXX. After further research on her end, she concluded that I was in fact entitled to the refund of the missing PayPal funds. Office Depot agreed to refund my credit card {$2000.00} on XX/XX/XXXX ( see attached credit card statement ). 

In the meantime, with the previous 5 accounts disabled by PayPal, I was using 4 new accounts since I had thought Paypal only disabled the previous accounts due to what they erroneously assumed was fraudulent activity on those accounts. 

Immediately following the refund from XXXX XXXX, PayPal decided to close all 4 of those accounts, likely as retaliation because XXXX XXXX was trying to collect the missing funds from PayPal which they had paid out to me for the refund, on XX/XX/XXXX. 

Both rounds of account closure were not only unwarranted but unfair. Not only was I missing a large amount of money ( {$2000.00} ), but PayPal decided this was " fraudulent '' on my part. 

Additionally, when PayPal decided to close my accounts, two accounts had funds still in them. I have tried numerous times to withdraw the funds, which are valid and my own and not a result of fraudulent behavior, and PayPal refuses citing that they will not refund them for 180 days and only if they find they aren't " owed '' the money in damages. Here are the sums withheld in the missing accounts : Account 1 : {$500.00} Account 2 : {$3000.00}