Consumer complaint received 2024-09-27 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: CA

Complaint narrative:
On XX/XX/year>, I discovered an unauthorized charge on my credit card ( Y ). The charge was for an active subscription that I have been paying for numerous years. When I originally subscribed to the service, I paid for it using my PayPal account. The merchant never received my credit card information. I decided to use my credit card ( X ) for the subscription. Subsequently, ever since then, the subscription was always billed to credit card ( X ) via PayPal. On XX/XX/year>, when I discovered the unauthorized charge via Paypal on my credit card ( Y ), I immediately logged into my PayPal account to investigate the activity. I discovered that my subscription with the merchant was billed to my credit card ( Y ) for XX/XX/year>, and XX/XX/year>. I was perplexed as to why the charges were posted to credit card ( Y ) instead of credit card ( X ). When I checked my PayPal wallet, I saw that credit card ( X ) had expired. That still didnt answer my question as to why the transactions were posted to credit card ( Y ). I have never set up or designated any other credit card in my wallet as a backup payment. Subsequently, the transactions for the subscription should have been declined, which would have led to me receiving a notice from the merchant that my monthly account charges were not approved. That would have prompted me to have investigated the problem, which I would have discovered was due to credit card ( X ) now being expired. My next step would have been to activate credit card ( X ) and update my Paypal wallet to process the transaction. Instead of those sequences of events playing out, Paypal took it upon itself to illegally decide to post the transaction to another credit card of its choosing that was in my wallet. Paypal does not have any legal rights, such as a power of attorney to make any financial decision for me, especially given the fact that I never designated any credit card to be used as a backup funding source. I do not use credit card ( Y ) for any purchases for financial reasons, such as the exorbitantly high XXXX that the card charges. 

I then called Paypal to address the illegal transactions. I ultimately spoke to a supervisor by the name of XXXX for an hour. I explained the sequence of events and, most importantly, that I never gave any legal authority, such as a power of attorney, nor did I establish any backup funding source to cover transactions. Instead of XXXX working to quickly and simply resolve the issue immediately, he outright refused and defended the illegal actions of PayPal. After wasting an hour of my valuable time, the call was terminated. 

On XX/XX/year>, I contacted credit card ( Y ) and explained the unauthorized transaction from PayPal and filed a dispute. I specifically identified that the dispute was solely with PayPal and not with the merchant. When PayPal received notice of the dispute, they simply forwarded it to the merchant instead of addressing the dispute, which was solely with PayPal. As a result, the merchant has disabled my account, which has had negative financial effects because XXXX cant access pertinent and vital information to conduct business! I explained the dispute with the merchant and was bullied to cancel the dispute to regain access to my account. I contacted credit card ( Y ) and cancelled the dispute on XX/XX/year>. I also notified PayPal of the cancellation. Its been over a week, and PayPal claims that they have no notice of it, even though credit card ( Y ) has redeposited the funds back to PayPal. On XX/XX/year>, I contacted PayPal again and specifically requested to speak to a manager. I spoke to XXXX. She assured me that she would escalate the dispute status and call me later that day to provide me with an update. As the business day came to a close, I never received an update from her. She failed to perform her duties and responsibilities along with everyone else. On XX/XX/year>, I called PayPal once again and spoke to XXXX in the limitation department, demanding to speak to a manager. Her response was that she would send an email requesting for someone to return my call. Given the failures of all employees and PayPal, I knew that I would not receive a call from anyone. I demanded to speak to her supervisor immediately. My request was met with her rudely and unprofessionally terminating the call! 

The illegal actions of Paypal have negatively impacted me financially. All of the employees, who are obviously not based in the United States, have failed to provide any adequate level of service to their customers and are void of any level of professionalism! This is my next step to seeking justice, and I will utilize all legal avenues to resolve this debacle and sham of a business! I will also post my experiences on social media in an effort to bring to light the illegal practices of PayPal in an effort to prevent anyone else from enduring this horrific experience!

Company response to consumer: Closed with explanation