Consumer complaint received 2026-04-10 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: MO

Complaint narrative:
I have been a PayPal account holder for approximately 20 years and have used the platform in recent years for digital service-related work. Approximately 120 days ago ( around XXXX XXXX ), my account was permanently limited following a dispute filed by a payer. The payer is not a traditional buyer, but rather a store that reimburses me for products and compensates me for digital services, including product feedback related to shipping, manuals, and overall product experience. The claim alleged that I failed to provide shoes, which is inaccurate, as I do not sell or ship physical goods and have never agreed to do so. During the dispute process, the claimant did not provide sufficient identifying information, such as an order confirmation, product details, or relevant correspondence. Because of this, I was unable to determine which transaction was being disputed and therefore could not provide accurate documentation of my completed services. I requested this information on multiple occasions but did not receive it. PayPal required me to provide documentation to support my position ; however, because the claim was framed as a physical goods transaction, I was asked to provide materials such as shipping or order confirmation details that do not exist for my type of work. Without the claimant identifying the specific transaction or service in question, I was unable to provide documentation that could reasonably be tied to the dispute without risking submitting inaccurate or misleading information. At the time, I contacted PayPal customer support multiple times via phone and chat while attempting to dispute the claim and regain access to my funds. While I do not have exact dates, these communications occurred throughout the initial limitation period approximately 120 days ago. During these interactions, PayPal representatives acknowledged that additional identifying information from the claimant would typically be necessary for me to respond fully. Despite this, the dispute was resolved in a manner that did not allow me to provide complete documentation, and my account remained permanently limited. During the limitation period ( approximately XX/XX/XXXX through early XX/XX/XXXX ), I was unable to receive payments. This caused significant disruption to my work, as I rely on receiving reimbursement payments for completed digital services. Because clients were unable to send payments to my PayPal account, I lost multiple payment opportunities, resulting in an estimated {$500.00} in lost income. In many cases, communication with clients ceased because the payment issue was outside of their control and PayPal was the agreed-upon payment method. In addition, the disputed transaction amount ( under {$100.00} ) was refunded, and I was charged a dispute-related fee. After approximately 120 days, I was able to withdraw the remaining balance from my account ; however, the account remains permanently limited and unusable. I believe this situation resulted from : - A dispute being accepted and processed without sufficient supporting evidence from the claimant - My inability to respond fully due to lack of identifying transaction details - A permanent limitation being applied without a reasonable opportunity to provide complete documentation Given the relatively small disputed amount and the significant resulting impact, including loss of income and inability to conduct business, I am requesting : - A full and fair review of the limitation decision - Reconsideration and removal of the permanent account limitation, or a clear explanation of the basis for this decision - Reimbursement of the disputed transaction amount, associated dispute fee, and consideration of the financial losses incurred due to the inability to receive payments ( and or to figure out a means to debit those transactions as if they were to go through to this date ).

Company response to consumer: Closed with explanation