Consumer complaint received 2025-12-05 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 submitting this complaint regarding XXXX refusal to reverse a subscription charge from the merchant XXXX, despite clear evidence that : XXXX. I canceled the subscription in writing before the renewal date. 
XXXX. The merchant did not process my cancellation at all. 
XXXX. They charged me again AFTER cancellation an unauthorized charge. 
XXXX. PayPal acknowledged my valid cancellation in XXXX dispute, then contradicted itself in the second dispute for the same subscription. 
XXXX. The merchant charged my PayPal balance instead of the card I authorized. 
Merchant Terms ( evidence attached ) At checkout, the merchants terms clearly state : XXXX can cancel your subscription at any time by contacting our customer support team via email at XXXX. 
XXXX money-back guarantee. 
-Payments will be charged from the card you specified here. 

This means : Their cancellation mechanism is email, not a portal. 
Once I emailed to cancel, they were required to stop all future billing. 

My Cancellation Was Timely and Valid I emailed the merchant on XX/XX/year> requesting : -Cancellation of the subscription -Refund of the initial charge -Prevention of all future charges This email was sent within 30 days of my XX/XX/year> purchase, and more importantly, it was sent BEFORE the renewal date of XX/XX/year>. 

Under their own terms, this cancellation revoked my authorization to be charged again. 

The Merchant Ignored My Cancellation and Charged Me Again Despite my cancellation, the merchant : -Did not acknowledge the cancellation -Did not process it -Did not stop billing -Charged me again on XX/XX/year>, after receiving my cancellation -Charged my PayPal balance instead of the credit card I originally provided This renewal charge occurred after I withdrew authorization, which makes it an unauthorized transaction, independent of any refund policy. 

PayPals Contradictory Handling On XX/XX/year>, I filed XXXX disputes which were almost identical, for the first and second charges from the merchant : Dispute XXXX WON PayPal refunded the original charge after reviewing the same cancellation email. 
This ruling validates that my cancellation was proper and timely. 

Dispute XXXX LOST PayPal denied the dispute for the renewal charge on XX/XX/year>, calling it valid even though : XXXX occurred after my cancellation XXXX already XXXX the cancellation was valid in my first dispute -The merchant did not process or honor my cancellation which I sent in writing -The renewal charge was deducted from my PayPal balance, not XXXX authorized card PayPal also does not XXXX me to appeal the denial, leaving me without recourse. 

These XXXX decisions can not both be correct. 

XXXX XXXX XXXX The merchants terms explicitly state that charges will be made to the card you specified here. 
Instead, they charged my PayPal balance for the second charge, without my knowledge or consent. 

This removed my ability to dispute the charge with my card issuer. 

I have attached the following : -Screenshot of my cancellation email sent within 30 days -Screenshots of the merchants XXXX guarantee -PayPals decisions for both disputes -Transaction records showing PayPals use of my balance without consent Requested Resolution I request that the CFPB require PayPal to : -Reverse the unauthorized XX/XX/year> charge of {$63.00}. 
-Investigate why the merchant was allowed to continue billing after I canceled in writing. 
-Review why PayPal applied contradictory rulings for the same subscription with the same evidence and did not allow an appeal. 
-Explain why PayPal XXXX the merchant to change my funding source without authorization. 

Thank you for your assistance.

Company response to consumer: Closed with explanation