Consumer complaint received 2022-03-29
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (SC)

*Please find screen captures/pdfs of the following to validate report* On XX/XX/XXXX, {XXXX} was paid/transferred by card to my PayPal account. 
A transaction fee of {XXXX} was subtracted immediately from the {XXXX} and the remaining XXXX} was subsequently put on holdwith the notification it would take 21 days for funds to be availableon XX/XX/XXXX. I have no way to access my money. 

When accessing account ( between XXXX ), PayPal prompts show questions to be answered to expedite release of funds being held. I answered questions repeatedly, and at the end of each session a screen displays " technical difficulties '' on PayPal 's end, and the information does not get submitted. 

On XX/XX/XXXX, I made a purchase at XXXX to purchase, I read ( what I thought meant ) that if card balance could not pay for purchase, funds in wallet could be used. As I assumed purchase to be paid for by wallet funds ( PayPal is in possession of the money not me ), I proceeded. The purchase made was submitted to my card on file and not the wallet, and upon notification from my bank, I immediately notified seller to cancel purchase. XXXX customer service said the matter needed to be escalated to higher departments, and they do not work on weekends. 

When I was not promised the sale would be canceled, I filed a cancel payment claim with PayPal stating I apparently did not read directions correctly but I made purchase and cancelled immediately with seller when I realized my card was used and I did not have funds, but could not receive a confirmation of cancellation by seller. PayPal responded that it may take weeks to investigate. 

The payment went through on XX/XX/XXXX, and it debited my account and caused an overdraft of $ XXXXand completely diminished any way of payment for 4 days, as card account was in negative balancea situation I explained to both XXXX and PayPal when canceling purchase. 

On XX/XX/XXXX, PayPalstill holding my fundssent an email prompting me to add another card or attach another bank account. 

On XX/XX/XXXX, PayPal denied my cancellation stating : " based on the information we have to date, we have denied your case. This decision was made because your billing dispute doesn't match our qualification for a billing dispute. '' I was not allowed a grace period to cancel a purchase within 24 hours ( I did it within 1 hour ) by eitheXXXX XXXX nor PayPalbut XXXX cancelled by my filing a cancellation with PayPal. PayPal, on the other hand, did not find my cancellation request valid, nor do they allow me access to my funds. 

I believe PayPal to have fraudulent business practices by taking their transaction fee without releasing the funds of said transactionthe transaction is incompletewhich is what I believe to be PayPal 's excuse for not releasing MY MONEY. 

On XX/XX/XXXX, I did call my bank and reported the matterI waited until XX/XX/XXXX because a XXXX rep promised I would be called about the purchase matter on XXXXI was not called, they simply sent an email saying purchased was cancelled and they will not take my card ever again. I spoke with my bank about the practice of holding funds after taking a transaction fee, and the bank rep had never heard of that situation. I have deposited ( high four-figure $ amounts ) checks to my bank with only a 10-day hold on their part. 

PayPal is holding a relatively small amount of money that has already been debited from the sender, and for which they have taken a feeI believe they need investigating for holding funds unnecessarily for profit/gain. Also, PayPal sending an email for me to attach another card while holding my funds I find to be a blatant practice of coercion for me ( the account holder ) to comply to get access to monies already owed to me. 

Thank you for any assistance.