Consumer complaint received 06-02-2017 about Money transfer, virtual currency, or money service (Mobile or digital wallet) with PAYPAL HOLDINGS INC. (IN).
Issue: Managing, opening, or closing your mobile wallet account

Complaint: On XXXX XXXX XXXX, I received an email from PayPal stating that my account was permanently closed and that I could no longer use PayPal services. In addition to my privileges being revoked from PayPal, the company is holding {$560.00} for a total of 180 days. <P/>My initial step was to contact PayPal in hopes that this was in error. However, they explained to me that it was in deed intentional and they may choose to close accounts and hold money at their discretion. After numerous attempts to retrieve my money and still remain a customer with PayPal, I learned that they were not will to reverse their decision. It was then explained that I was a risk, and they felt that at anytime a customer will fall victim to me. However, I am the one who fell victim, as none of my customers have been scammed by me. I have been faithful and has displayed complete integrity with my customers during every exchange/transaction. <P/>The chain of events began on XXXX XXXX XXXX, when I tried to complete a bank transfer for the amount of {$560.00}. I kept receiving an error requesting extra verification before I could complete my transfer. I complied with the request and uploaded personal documentation such as my social security number onto their website. This seemed quite strange to me and made me rather uneasy, so I decided to contact PayPals customer service team. I spoke with a female representative who assured me that my information was safe with them and that I should have no worries. She went on to explain that PayPal would charge my debit card on file {$1.00} and there would be a verification code next to the charge for me to enter on PayPal. I followed through with those steps entered the verification code as soon as it appeared on my transaction history. The {$1.00} charge was then refunded as PayPal promised. This was explained to me as another method of verification without providing them my social security number. <P/>It seemed as if everything was going smooth and that I would be well on my way to completing my transaction. Moving forward, on XXXX XXXX XXXX, I logged into my PayPal account again and noticed that I was required to upload more documents for verification purposes that included a photo identification, proof of address, proof of invoices, and more. Once again I complied by doing exactly what I was instructed do. However, I also contacted PayPals customer service team to confirm that the documents that I would soon upload would be sufficient. I was assured that I was heading in the right direction and that everything would be fine once they reviewed the documents. So, XXXX XXXX XXXX, I finished uploading the documents and was notified that the documents would take anywhere between 2
4 to 48 hours to review. However, a few short hours later, I received the troubling email that I described earlier.
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At this point, I am troubled and I couldnt understand what I did wrong. I am a young XXXX XXXX who started a XXXX business and referred all of my customers to using PayPal as a safe method to operate my business. Ive provided tracking numbers to customer orders as well as receipts in their shipments. After trying to contact PayPal and speak to higher up people within the company, no one could give me a legitimate explanation as to why my PayPal account was closed and why I could no longer use PayPal. The only reasoning Ive gotten from the representatives and supervisors were that I was a high risk to their company, due to my XXXX business and therefore they shut me down. After speaking to numerous supervisors, I finally spoke to one that offered a little relief. He agreed to change the holding period of my money from 180 days to 90 days. I agreed, although I still believed that to be excessive. So, I began my own research and learned that situations like this was not unique to me, as PayPal has made this a pattern with several individuals who operate their business through this company. Their pattern is, they will close a customers account, hold their funds, and provide no explanation why. I was told by one of the representatives that he was not at liberty to provide me with any form of an explanation, I feel as if I have been done an unjust disservice. I have never, nor did I have intentions, to conduct any activity that would threaten my business and lose the trust of my clientele. However, I am a screeching halt, unable to provide my customers with the product ( XXXX ), that I have been for an extended amount of time. {$560.00}, is a vast amount of money for an XXXXyear-old XXXX XXXX, who found a way to make additional money to assist with his XXXX financial obligations and of course, a little money for pleasure.

Company response to consumer: Closed with non-monetary relief