Consumer complaint received 2026-01-05 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 filing this complaint regarding XXXX handling of an unauthorized {$200.00} Pay in XXXX transaction on my account and XXXX refusal to properly investigate, provide evidence of authorization, or correct an improper dispute classification. 

This transaction was unauthorized. I did not approve the purchase and did not authorize any XXXX in XXXX agreement related to it. I filed the dispute as an Unauthorized Transaction. At some point, PayPal changed the dispute reason to Item Not Received. I never requested or authorized this change. PayPal has relied on this misclassification to deny or close the dispute because Item Not Received is treated differently under its protection policies. The original issue remains unauthorized use, and XXXX internal categorization should not override that fact. 

I explicitly told PayPal representatives that I do not authorize any change to the dispute reason and that it must remain Unauthorized Transaction. PayPal refused to correct the classification and would not provide proof showing that I requested or approved the change. 

Despite the dispute being active, PayPal continued debiting my account. I repeatedly requested proof that this transaction was authorized, including documentation, audit logs, or evidence of my consent. PayPal has refused to provide any documentation or evidence of authorization. 

During multiple phone calls, my case was rerouted more than XXXX times, and I was repeatedly told the issue would be taken care of, but it was not resolved. During XXXX call, a representative implied that I was being untruthful and suggested that I had made the charge. I disputed this and requested an Account Takeover review, specifically asking PayPal to examine login history and access data. The representative stated that he would transfer me to the Account Takeover department ; however, instead, I was deceptively transferred to an unrelated department, and the requested review was not performed. 

At no point did PayPal provide login or access history, evidence demonstrating authorization, documentation showing who changed the dispute reason or why, or any explanation for refusing an Account Takeover investigation. Instead, PayPal relied on unsupported assertions that the charge was authorized while refusing to review or disclose the evidence that would confirm or refute that claim. 

PayPal also offered a partial settlement of {$80.00} to close the matter while maintaining that the charge was valid. Offering a partial settlement in place of evidence raises serious concerns regarding the adequacy and integrity of the investigation. 

I am also a XXXX parent with XXXX children in my household, and PayPal was made aware of my circumstances. Despite this, PayPals actionsincluding excessive transfers, misleading assurances, refusal to escalate appropriately, and continued debiting during an active disputecreated significant and unnecessary barriers to accessing dispute resolution and caused financial hardship.

Company response to consumer: Closed with monetary relief