Consumer complaint received 2026-04-12 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: NC

Complaint narrative:
I am filing this complaint regarding PayPals continued restriction of my account and withholding of funds in a manner that appears inconsistent with its own User Agreement and stated policies. At the time of restriction, my account reflected approximately {$18000.00} in my PayPal personal balance and approximately {$9300.00} in PayPal Savings. Currently, my PayPal balance reflects {$16000.00}, with {$9300.00} still held in PayPal Savings. These funds include legitimate income, including proceeds originating from an IRS tax refund. In early XX/XX/year>, I received multiple payments from a single sender over a short period of time. Beginning in XX/XX/year>, multiple disputes and chargebacks were initiated, all tied to this same sender. The total dispute exposure is estimated to be in the range of approximately {$3000.00} to {$3500.00}. Despite this, PayPal applied a blanket restriction across my entire account and all funds. According to PayPals User Agreement, limitations and reserves may be applied to protect PayPal and the network and may be based on anticipated risk or liability. The agreement also indicates that funds not subject to restriction or reserve should remain available for withdrawal. However, in my case : - The identified risk is limited to a defined set of transactions tied to a single sender - The total exposure is approximately {$3000.00} to {$3500.00} - PayPal is currently withholding over {$16000.00} in PayPal balance, in addition to {$9300.00} in PayPal Savings This appears disproportionate to any reasonable or anticipated liability. Additionally, PayPals agreement references the use of funds as a reserve or security for potential liabilities. However, the amount currently being withheld significantly exceeds any known or reasonably anticipated chargeback exposure. If PayPal is relying on a risk-based or protective justification, I request a clear explanation of how holding funds far exceeding the actual dispute amount is necessary to protect PayPal or its network. Furthermore, PayPal has not provided : - A transaction-level explanation of the restriction - An itemized breakdown of disputed transactions- Clear identification of which funds are considered restricted versus unrestricted Without this transparency, it is not possible to determine whether PayPal is applying its policies in a reasonable and consistent manner. Additionally, the pattern of disputes originating from a single sender within a defined timeframe suggests potential unauthorized use or abuse of the dispute system. Under a reasonable risk-based framework, this should have triggered a targeted fraud investigation into the source of the transactions, rather than a blanket restriction of unrelated funds. PayPal performs functions similar to a financial institution, including holding customer funds, accepting direct deposits, and receiving tax refunds. As such, it should be held to reasonable standards of fairness, proportionality, and transparency in how it applies restrictions to customer funds. Based on the above, PayPals actions appear : - Disproportionate relative to the identified risk - Inconsistent with its stated purpose of applying limitations for protection - Lacking sufficient transparency and justification I am requesting : 1. Immediate release of all funds not directly tied to disputed transactions 2. A complete itemized breakdown of all disputed transactions and associated amounts 3. A clear written explanation of the basis for any continued restriction 4. Clarification of how PayPal determined the amount of funds being held as a reserve 5. Review and removal of any improper dispute-related fees

Company response to consumer: Closed with explanation