Consumer complaint received 2020-08-16
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (NY)

On XX/XX/XXXX I found a deal on an espresso machine when searching via XXXX at a website called XXXX. Without thinking about the merchant, I proceeded to purchase, based on the link from XXXX and the site 's checkout via PayPal. I paid for the purchase with a credit card. 

After completing the purchase, I received two emails - one a quick summary of the transaction and a second saying the transaction was on hold until payment was confirmed. I thought that was puzzling, given that PayPal makes the payment instantly. I sent a response to XXXX two the email address on their website and got a bounce back message. I then went to the website and saw a phone number which I called and it went directly to a generic voicemail box. I finally looked at the address on the site and found it was a XXXX. I felt I was scammed. 

I immediately sent a message to PayPal. I thought they would help me reverse the charge. I also submitted a dispute, but did not see a reasonable category for the dispute, so I listed 'Other ' ( Case # XXXX ). Despite attempts to message with PayPal and call them, I only received precanned responses hours after I sent the inquiry, and was unable to speak to a phone rep. After a few days on XX/XX/XXXX, I received notice that PayPal denied the dispute saying my " After having reviewed all the details, and based on the information we have to date, we have to deny your case. This decision was made because your billing dispute doesn't match our qualification for a billing dispute. ". I responded asking how they could possibly say that, they reopened the case. On XX/XX/XXXX the 'seller ' sent a XXXX tracking number via PayPal for a package that was delivered that day. Unfortunately, after speaking with XXXX, I was informed the package was not sent to me, nor to my address, nor was it of a weight that matched the item I ordered. It was a XXXX tracking number for a package sent to someone in XXXX XXXX, NY where I live however. 

I shared this evidence with PayPal again via chat. PayPal again denied the dispute for the same reason on XX/XX/XXXX. Once again, I attempted to state my case and find out how they could deny without speaking to the seller and/or reviewing the claim in any form of detail. One of the reps then told me I needed to change the case type from 'Other ' to 'I never received the item '. I attempted to do that, and in that process apparently cancelled the original case. Needless to say, I had no idea that I could not resubmit the new claim with the appropriate reason code, and PayPal was so slow to respond that I got overzealous. 

PayPal has since informed me that since I cancelled the case, its proof that I was able to reach a resolution with the seller. I have disputed the transaction with my credit card company and they've informed me that this sort of thing happens far more often than PayPal would like to admit. 

To be honest having spent my entire career in financial services and particular payments, I was shocked to see that PayPal seemed to have no controls in place to review the seller 's site, particularly after I shared all the issues I posed, nor did they feel it necessary to follow up with XXXX or the seller directly. It seems dangerous to allow them to accept merchant payments on behalf of new sellers who they may not be vetting, if they have no protections in place for consumers. In hindsight, I was XXXX for clicking the buy button, and I clearly was annoyed and frustrated by the PayPal process and lack of human interaction which caused me to cancel the case which had been denied twice. Needless to say, I am hoping PayPal is made aware of their error in this case and helps prevent others from falling for their fraudulent trap and having to deal with such a painful process to recoup their funds from a fraudulent merchant. 

I've attached the messages from the merchant, as well as the transcripts with PayPal and the two denial emails from PayPal for reference.