Consumer complaint received 2024-05-30 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: NV

Complaint narrative:
XX/XX/XXXX - XX/XX/XXXX Made purchases on XXXX XXXX XXXX for XXXX XXXX  XXXX by XXXX. The total amount was {$2300.00}. Before making purchases I made sure that my authorized payment source was my PayPal XXXX. There were no backups. 

XX/XX/XXXX Saw an alert from PayPal that my bank declined an electronic funds transfer. 

I looked into my bank account to see what was going on. 

XX/XX/XXXX NSF ACH FEE / In the amount {$220.00} PAYPAL - {$15.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$79.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$79.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$79.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$79.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$35.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$21.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$7.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$7.00} XX/XX/XXXX PAYPAL / TYPE : XXXX XXXX CO : PAYPAL NAME : - {$7.00} PayPal had withdrawn {$1000.00} from my bank account out of the {$2300.00} in transactions I had made. 

My first purchases went to my citi card for {$520.00}. 
After that I changed it to my PayPal XXXX. {$750.00} purchases went there. The remaining purchases went to my bank account. 

On XX/XX/XXXX I made contact with PayPal to understand why my bank account was being charged. I asked them to put the funds back into my bank account and throw the charges on to my paypal mastercard. I also asked them to return to me the {$15.00} I was charged in overdraft fees. They told me that my PayPal XXXX had been declined and that I'd need to call them to fix it. I called them and fixed it. PayPal XXXX said that there was nothing they could do about the transactions that went to my bank account and recommended I call my bank and reverse those charges since they were not authorized. 

I went back to PayPal. PayPal said that it automatically selects my bank account if my primary funding source is declined... even though I did not set my bank account as a backup. Rather than decline the transaction and notify me they select a funding source I did not authorize them to use and do not even notify me that it got used. I only found out from an overdraft fee email. On XX/XX/XXXX a subscription I had also went to my bank account rather than my credit card because the credit card was declined and then I got hit with an overdraft fee. I checked my autopay settings. The only thing listed under that subscription was that credit card that was declined. I had no backup. That means they were not authorized to use my bank account to fund that transaction. Not only that but they're threatening to hit my bank account 2 more times and hit me with more overdraft fees and that they will not stop. 

This is not the merchant 's fault. They were authorized to charge my XXXX wallet. 
This was not XXXX 's fault. They were authorized to charge my PayPal account. 
This is entirely PayPal 's faut. They were not authorized to withdraw funds from my bank account. They should have declined the transaction and XXXX Bank, the bank behind PayPal XXXX, should have notified me that my credit card was locked like any other card issuer would. 

As I did not authorize PayPal 's use of my bank account for these transactions I am now forced to go to my bank and reverse the transactions as unauthorized.

Company response to consumer: Closed with explanation