Consumer complaint received 2025-05-08 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
I am disputing several transactions processed through PayPal ( funded by both PayPal Credit and my XXXX credit card ) for XXXX XXXX XXXX purchased from XXXX XXXX platforms via XXXX XXXX XXXX XXXX ) and XXXX XXXX XXXX XXXX XXXX XXXX XXXX ). These companies functioned as merchants not personal agents and directly accepted payment through PayPal, issued invoices, and handled order fulfillment under their own business names. 

After placing the orders, I received warehouse photos showing the cards were clearly counterfeit. I submitted side-by-side comparisons with PSA-certified authentic cards, photographic evidence of misprinted text, foil inconsistencies, and incorrect coloration. In at least one case ( XXXX XXXX ), the merchant confirmed the item was a scam and canceled the shipment. Several other items were never shipped and remain in warehouse custody. 

I filed disputes immediately through PayPals Resolution Center, followed all required procedures, and submitted detailed photographic and documentary evidence. Despite this, PayPal closed the cases as ineligible or denied them outright without explanation, even though these transactions fall squarely under PayPals own Buyer Protection policy, which covers : Items that are significantly not as described, including counterfeit goods Items that were not received Purchases made online from merchants who accepted payment via PayPal These were standard e-commerce purchases not in-person pickups or informal arrangements. The sellers acted as registered merchants, accepted payment directly, and provided no indication that their transactions would be exempt from PayPal protection. 

Affected transactions include : XXXX XXXX {$100.00} ( XXXX XXXX ) Received counterfeit card Transaction ID : XXXX ( XXXX ) XXXX XXXX {$86.00} ( XXXX XXXX ) Counterfeit item, never shipped Transaction ID : XXXX ( XXXX ) XXXX XXXX {$25.00} ( XXXX XXXX ) Shipping for the above Transaction ID : XXXX ( XXXX ) XXXX XXXX {$56.00} ( XXXX XXXX ) XXXX XXXX XXXX PayPal Credit XXXX XXXX {$86.00} ( XXXX XXXX ) XXXX XXXX XXXX XXXX PayPal Credit  XXXX XXXX {$86.00} ( XXXX XXXX ) XXXX XXXX XXXX XXXX XXXX  PayPal Credit XXXX XXXX {$170.00} ( XXXX XXXX ) XXXX XXXX counterfeit, flagged before shipment PayPal Credit XXXX XXXX XXXX XXXX XXXX XXXX XXXX ~ {$740.00} on XXXX XXXX ) XXXX confirmed item was a scam PayPal Credit Transaction ID : XXXX I made these purchases in good faith and followed all procedures outlined in PayPals Buyer Protection policy. PayPals denial of these claims without clear justification, despite extensive proof and even merchant admission in some cases, constitutes a serious breakdown in dispute handling. 

This is not just a single oversight it reflects a pattern of PayPal failing to apply its protections consistently and attempting to avoid liability by reclassifying merchants as agents post-transaction. That is misleading and deceptive, especially when payment was taken directly by the merchant and no exemption was disclosed. 

I am requesting full refunds for all affected transactions and a formal review of PayPals dispute handling practices related to digital goods, counterfeit merchandise, and international merchant misclassification.

Company response to consumer: Closed with explanation