Consumer complaint received 2026-05-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: NJ

Complaint narrative:
On XX/XX/year>, I sent approximately {$20000.00} through PayPal for the purchase of a XXXX XXXX. During the transaction process, the seller asked me to confirm receipt with PayPal, and at the time I relied on the sellers representations and believed the transaction would be completed as promised. However, the item was ultimately not delivered, and the seller was unable to provide proof of delivery. I filed a dispute with PayPal regarding the transaction, and PayPal investigated and ruled in my favor. Shortly afterward, PayPal permanently limited my long-standing account based on alleged links between my account and the sellers account. PayPal referenced internal indicators such as related card information, address details, IP information, tax information, and account activity patterns. I repeatedly explained that I did not intentionally coordinate with the seller in any improper manner and that I was ultimately the buyer who suffered the financial loss and transaction issues in this matter. During executive-level review correspondence, a PayPal representative acknowledged that they did not believe the events surrounding the transaction were intentional on my part and acknowledged that I no longer have any relationship or transactions with the seller. Despite multiple reviews, including escalation through PayPals Global Customer Complaints & Advocacy team, PayPal permanently banned my account and refused reinstatement. I requested clarification regarding the alleged linkage findings and requested reconsideration or conditional reinstatement, including willingness to comply with enhanced verification or restrictions. However, PayPal did not provide meaningful detail regarding the evidence being relied upon or a practical opportunity to challenge the findings. I respectfully request : 1. A fair reconsideration of the permanent limitation decision ; 2. Greater transparency regarding the basis for the account linkage findings ; 3. Consideration of conditional or restricted reinstatement given my long account history and the acknowledgment that my conduct was not believed to be intentional misconduct. I also believe the outcome is disproportionate and unfair given my approximately 14-year history with PayPal without prior issues or policy violations. After many years of responsibly using the platform, the first time I needed to rely on PayPals buyer protection system following a failed high-value transaction, my account was permanently limited despite PayPal acknowledging that my conduct was not believed to be intentional misconduct. At no point during my many years as a PayPal customer had my account previously been restricted, flagged, or associated with any comparable issue. Despite the severe and permanent nature of this action, I was not provided with a meaningful opportunity to review or challenge the specific information being relied upon before losing access to my account permanently. In addition to personal transactions, I have also used my PayPal account over the years in connection with alot of charitable and community-related activities without prior issues, complaints, or policy concerns. This is another reason why the permanent limitation has been particularly difficult and unexpected after many years of responsible account usage. I have attached the relevant correspondence with PayPals Global Customer Complaints & Advocacy team. Pay pal response Hello XXXX, Thank you again for taking the time to speak with me and to share your perspective. Ive made sure that the request you had put in for reconsideration, along with your disagreement with the findings, has been formally noted on your account record. I also want to say that I truly understand how frustrating and discouraging this situation must feel, especially given your experience with the transaction. While our internal indicators do show a strong link between your account and the seller, I hear what youve shared, that you felt taken advantage of by your friend and that youve since ended any transactions and relationships with them. Im sorry if my earlier explanations in my email didnt fully reflect that, as I intended to acknowledge that you had a past relationship with the seller, what occurred during this transaction I believed was not intentional, and that you no longer have any association with that person. After carefully reviewing everything a second time, including the full history of your relationship, recent events, the details of this transaction, the associated loss, and prior account history, we werent able to reach a level of comfort to overcome the potential future risk. I know this isnt the outcome you were hoping for, and Im sorry for the disappointment this causes. Thank you, \XXXX\nGlobal Customer Complaints & Advocacy\nPayPal

Company response to consumer: Closed with explanation