Consumer complaint received 2025-10-19 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: IL

Complaint narrative:
I am the owner of a verified XXXX business account ( XXXX XXXX XXXX ). On XX/XX/year>, I received a payment of {$7500.00} USD for the sale and delivery of XXXX XXXX ( XXXX XXXX XXXX shipping containers to a customer in Virginia. Shortly after the payment was received, PayPal immediately restricted my account and held the funds. After PayPal deducted its fee, my available balance showed {$7200.00} USD.

PayPal then requested multiple documents, including : Proof of identity ( ID verification ) Proof of purchase from my supplier Additional information on my business operations My company website details Proof of fulfillment for the transaction I fully complied and submitted all required materials, including a signed Order Fulfillment Confirmation Letter ( Attachment 1 ) confirming that delivery would be completed shortly. The letter included my EIN, business address, signature, and government ID.

This transaction involved commercial freight equipment ( shipping containers ). Such items can not be delivered via standard carriers like XXXX or XXXX they require specialized transportation ( flatbed or landoll trucks ) arranged through independent owner-operators. 

Once delivery was completed, I received a Proof of Delivery ( POD ) from the carrier showing pickup and delivery locations on the official depot form, with the drivers signature and contact details. I also provided a XXXX payment confirmation showing that I paid the carrier from my personal account, since PayPal is my only active account under this LLC.

Despite these legitimate submissions, PayPal repeatedly rejected my documents, stating they were not legible or missing a tracking ID. In commercial freight, there is no tracking ID, as deliveries are verified through signed PODs and invoices, not automated tracking systems. 

On XX/XX/year>, I submitted the final carrier invoice a clear, formal document issued by the transporter. PayPal rejected it again, claiming that it lacked a tracking ID, which is unreasonable and irrelevant for this type of transaction.

Furthermore, PayPals support later stated they had contacted my buyer directly for confirmation, which is not part of any legitimate AML or compliance review process and has no legal relevance to business verification.

I have now submitted every possible legitimate document : commercial invoice, supplier records, proof of fulfillment, POD, payment receipts, and identity verification. Nevertheless, PayPal continues to hold my funds without legal basis and to demand non-existent documents inconsistent with standard commercial logistics practices.

I believe PayPal is abusing the AML/compliance process, using it as a pretext to delay fund release and harm small business operations. Their conduct is unreasonable, inconsistent, and financially damaging.

I am requesting a manual compliance review by a qualified PayPal compliance officer and the immediate release of my business funds.

I have attached all supporting documents, including invoices, proof of delivery, payment records, correspondence, and screenshots of the account limitation notice.

If any of the attached materials contain sensitive or personal information, I hereby consent to their processing and review by the CFPB and PayPals compliance officers solely for the purpose of this investigation.

This situation is directly impacting my ability to operate my business and constitutes an unfair and abusive practice under federal financial regulations.

Company response to consumer: Closed with monetary relief