Consumer complaint received 2019-10-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
PayPal simply does not like or accept challenges to their dispute resolution findings. Any type of rebuttal, they view it as a challenge to them and retaliates by immediately restricting your account completely before closing it with a generic reason stating PayPal doesnt do business with people like me. 

I started using PayPal in early XX/XX/2019 because I lost my job and was preparing to be homeless. I had to settle and prepare for a lot of my personal affairs. This included holding my mail for periods of time until I can get back on my feet. My friends and family would start using PayPal to send money to me so I can survive. I had been using either XXXX to cash out the funds or transferring to my bank account. As each day gone by, my bank account was hit with numerous expenses which eventually I wasnt able to use them. The fees from XXXX has started to add up and it wasnt worth it to cash out {$20.00} or {$40.00}. I remembered i had the PayPal debit card sent to me. However i was in XXXX XXXX, XXXX and my mail was being held in XXXX XXXX, XXXX. I dont retrieve my mail often cause its a 6 hour drive each way. I dont remember when I was able to activate the debit card from Paypal. I probably had it in my possession the first week of XXXX. Anyways, I never used the PayPal debit until XX/XX/2019. I begun to notice my balance being unusually low. 

I looked and realized my debit card was used for purchases and cash withdrawals days before my first use which was XXXX. I disputed the transactions as unauthorized. *Paypal cancels my current debit card on XXXX and issues a new one. They responded on XXXX stating my claims are denied because the card was present, chip read, pin entered. Plus I had possession of the card. PIN can only be known by authorized user. 

I called and stated that I do have the debit card and its not lost or stolen, but is PayPal stating that their Debit card is so secure it can not be skimmed or hacked? There is no possible way someone I have never met or known to use devices or programs to obtain my card information to duplicate one and known my PIN? The response was unless I gave them the information. Thats accusation without any evidence. 

I decided to test them by disputing charges in which I told them within the first set of disputes that I authorized. They came back the following day, XXXX using what I wrote stating in your first set of disputes you acknowledged using your card after XXXX, therefore you authorized these transactions. 

So in the first set of complaints you did not dare to say who used the debit card but I had possession, but with 100 % certainty that only an authorized user will know the PIN and no possibility the PIN can be discovered. In the 2nd set, you stated I used the card and I had possession. 

I disagreed and got my account restricted than closed. PayPals debit card doesnt follow Federal Guidelines for unauthorized transactions with PIN used and consumers liability?

Company response to consumer: Closed with explanation