Consumer complaint received 2026-06-02 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: OK

Complaint narrative:
I am submitting this complaint regarding PayPal 's handling of an unauthorized transaction and the resulting negative balance on my account. On XX/XX/year>, a {$200.00} XXXX XXXX XXXX gift card was purchased through my PayPal account without my authorization. I reported the transaction to PayPal as an unauthorized transaction and explained that my account had been compromised. The transaction involved a digital gift card delivered through PayPal 's gift card system. The gift card code was not displayed directly in the email. Instead, the email required the recipient to click a " View My Code '' link to access the gift card. I never intentionally accessed, redeemed, or benefited from the gift card. After discovering the transaction, I promptly reported it and worked with my financial institution, which reversed the payment as a fraudulent transaction. PayPal denied my unauthorized transaction claim, stating that there was insufficient evidence to determine unauthorized use. Following guidance from a PayPal representative, I submitted an appeal. However, the appeal was denied on the basis that the purchase was not covered under PayPal 's Purchase Protection Policy. I believe this demonstrates a failure to properly evaluate the issue being raised. My dispute is not a Purchase Protection claim and has never been based on dissatisfaction with a product or a merchant dispute. My position has consistently been that the transaction itself was unauthorized. After additional discussions with PayPal, including conversations with customer service representatives and a supervisor, I was instructed to submit a written request to reopen the claim and provide supporting documentation. I complied with that request and submitted : A detailed explanation of the unauthorized transaction. Documentation relating to the dispute. A screenshot showing that the gift card required a separate " View My Code '' step before the code could be accessed. A request that PayPal review whether the gift card was ever viewed, claimed, activated, or redeemed. PayPal responded with another denial stating only that there was not enough evidence to support my claim. The response did not address the evidence submitted, did not address my request for review of gift card access or redemption records, and did not explain what evidence was relied upon to conclude that the transaction was authorized. As a result of this transaction, PayPal has placed a negative balance on my account and continues to hold me responsible for a transaction that I maintain was unauthorized. I have been a PayPal customer for approximately XXXX years and have exhausted every internal process made available to me, including the original claim, appeal, supervisor review, and written request to reopen the case. I am requesting that PayPal : Conduct a complete review of this transaction as an unauthorized transaction claim. Review all available records concerning whether the gift card was viewed, accessed, claimed, activated, or redeemed. Explain the basis for its determination that the transaction was authorized. Remove the negative balance associated with this transaction if the evidence does not establish that I authorized or benefited from the purchase. Provide a written explanation addressing the specific evidence and issues raised. I respectfully request CFPB assistance in obtaining a thorough review of this matter and a substantive response from PayPal regarding the basis for its decision.

Company response to consumer: Closed with monetary relief