Consumer complaint received 2018-06-26 00:00:00
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
State: MI

Complaint narrative:
In XXXX I started a business and started accepting Paypal payments. My business is a XXXX XXXX XXXX that sells primarily with XXXXXXXX XXXX. We source our products from XXXX in XXXX for really low prices, and ship directly to the customers all across the world. We were able to find a very high quality wallet, that we got for a really good price, and it was very profitable. It was about a month into starting our business, we had tested around 60 products and found this wallet to be the most profitable. At the most, we sold up to 75 or so wallets a way. It was profiting me around {$500.00} a day or so. It was the first time In my life where I felt like I had really figured out something that could get me this good of a return. As I had been living paycheck to paycheck for years and it felt good to finally be successful with something. Quickly, because of Paypal and paypal alone, my business has slowed to grinding halt, as we can't order products, or pay for advertising, because Paypal is holding our money for 180 days. It all started when I tried withdrawing around {$1000.00} or so, as my balance was getting in the 2000-3000 range. I then received an email on XX/XX/XXXX, that my account was limited, that paypal was going to hold my money until I could send them some VERY personal information about myself and my business. I got a very long email that day asking for many things, I will attach the email in it's entirety. They wanted a whole host of information, my ID, my bank account statements for the last 6 months ( only been in business 3 months ), invoices for everything, and they showed me that they had submitted a hard inquiry to my credit, along with other things. They asked that I submit all this info to my paypal backoffice. I did so the very same day. They told me I needed to wait 3-4 business days. So I waited til the XXXX with no response, over 5 days! I then called them at XXXXXXXX XXXX on XX/XX/XXXX. The man ( didn't get his name ) told me he would escalate the issue to Paypal and they would make a decision very soon and I should be good to go. The very next day, on the XXXX of XX/XX/XXXX, I got an email that I will attach from Paypal saying they no longer wanted to do business with me, claiming I am high risk! They cited delivery timeframe ( which is clearly stated on my website, tracking numbers are also added straight into my paypal account so you can see what it shipped and delivered ), I had next to none ( 3 ) chargebacks in around 1000 or so orders. So my chargeback rate is super low compared to industry standards. They also cited overall processing volume ( too many orders too fast ), high risk industry ( it is not high risk, my customers get their products when they are supposed to and they are as described, and shown by my low chargeback rate and through our other channels like email and XXXX. Also they cited the financial assessment of my business contributed ( they decided they didn't like what my financials looked like, everything was as it was supposed to be ). And my credit report, as I have a XXXX credit score. This should not disqualify me from getting my money. They have no basis for their claims. And no proof. They are saying the decision is final and that they are going to hold {$6900.00} of my hard earned money for 180 days! They are also not allowing me to do business with them anymore, which is costing me money everyday. I replied to the email and they didn't respond. I can not afford to do it without Paypal, as many customers view the PP signal as a sign of trust, and are more willing to buy products online with Paypal. Around 75 % of my sales were through paypal. So needless to say, without Paypal, ( and you can only have 1 business account ), I can not afford to operate. This hold has basically put me out of business until I can get the account reinstated or get my money back. Every business needs capital and cash flow to grow and Paypal has taken that away from me by fraudulently claiming without proof that I'm violating their terms. I called them two more times after getting the email about my account being closed. I called them three times on XX/XX/XXXX. The first time I called at XXXXXXXX XXXX, and they said they were going to call me back in 45 minutes. They never called. After 2 more hours, at XXXXXXXX XXXX   I contacted them and a woman who was very rude told me everyone has to deal with the 180 day hold, and that there was nothing she could do. She told me to call back after 45 days and they MIGHT let me have my money. She was not able to help. I called back again at  XXXXXXXX XXXX to see if I could talk to someone who could help. A man talked to me this time, and told me no matter what I was going to have to wait for 180 days to get my money, and that there was nothing they could do to help me. 
After this, I sent another email on Friday the XXXX, respectfully asking that they release my money from holding and that I would contact you if they did not comply. I even offered to let them keep {$500.00} for chargeback purchases just in case. And that what they were doing was wrong and they they needed to return my money or I was going to seek help from different agencies. I gave them until the morning of the XXXX of XX/XX/XXXX, to respond to my requests. They emailed me back, a guy named XXXX, saying he was sorry for the trouble I'd been through, and that they were reviewing the account. That email from him came on the XXXX. I have since waited and now it's the XX/XX/XXXX with no response from Paypal after they said they were reviewing the account again ( after saying in another email that the decision was final ). This is a serious abuse of power by Paypal, and they are using their influence to shut down my business. They have already lost in court and have admitted that they do this to their customers and have had to pay millions in damages. Yet they continue to do it to people like myself. I have been told this is done to keep their cash reserves high, to keep their stock price higher with that information, and that they make interest off all the money they keep in holding.. So they are using my business profits to illegally profit off of my business by making interest and trying to make it seem like it's impossible to get the money back. This is a serious problem that thousands of people have had to deal with, and it needs to come to an end. I ask that they reinstate my account and they allow me to withdraw my money immediately.

Company response to consumer: Closed with explanation