Consumer complaint received 2024-02-16 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: MA

Complaint narrative:
XXXX XX/XX/scrub>XX/XX/2024 : Original {$900.00} direct deposit ( to a XXXX XXXX account ) transaction made through XXXX. This was rent payment. 
XX/XX/XXXX : Initial estimated delivery date for delivery of funds from XXXX. 
XX/XX/XXXX : XXXX notifies me through my PayPal account that a refund was attempted, and it failed. 
XX/XX/XXXX : My bank, XXXX XXXX XXXX XXXX notifies me through email of XXXX 's refund attempt ; that funds are being sent back to PayPal within 5 business days, and advises contacting XXXX. I immediately call XXXX to provide alternate bank account information. I was informed that the original transaction failed because the bank account that I was originally sending the direct deposit to, ( XXXX XXXX account ) was a business account and XXXX does not process commercial payments. I was also told that while they will request to refund via the alternate bank account I provided, refunds will be made via a physical check in 10 to 15 business days, mailed to the address associated with my XXXX/PayPal account . I receive no further communication from XXXX or PayPal regarding the refund, its timeframe, or the method of payment. 
XX/XX/XXXX : I call XXXX for an update ; I am told the refund had not been processed at all, and they promise to initiate the release of a physical check immediately for the refund, restarting the 10-15 business days for delivery. I receive no email to confirm this. 
Later on XX/XX/XXXX : I call again to get something in writing with an estimated delivery date ; this call is escalated to a supervisor. The supervisor assures me a physical check refund will be sent ( new 10-15 business day timeline starts ), and that I would receive email confirmation. I did not receive any communication about the call or the refund from XXXX or PayPal through email or through the app. 
XX/XX/XXXX : I receive an email notification from my bank, XXXX XXXX XXXX  XXXX, that a refund was initiated. The supervisor I spoke to on XX/XX/XXXX failed to initiate the refund via physical check. Instead, the refund is re-attempted to my original bank account ( XXXX XXXX XXXX XXXX ), starting the process of attempting the deposit and XXXX XXXX XXXX XXXX rejecting it, which is what happened on XX/XX/XXXX. 
XX/XX/XXXX : This new failed refund attempt occurs and is reflected on my PayPal transaction history, and I call XXXX again to ensure the check payment will be processed and that I receive an email confirmation of the refund via physical check. I stayed on the phone until I got something in writing, but the language in the email is very vague : Subject : Update on transaction " Thanks so much for your information. We've submitted this to our headquarters and will update you with the time frame of your refund for transaction XXXX shortly. Please feel free to contact us if we can be of any further assistance. 

XXXX Customer Service '' Key Details Reason for Refund : Failed transaction due to the recipient having a business account. 
Main Issue : Repeated failures and significant delays in the refund process. XXXX agents provided incomplete and vague information, and failed to follow through on promised actions or notify me in writing of the refund status. 
Impact : Undue financial stress ( this was rent payment ) and substantial time wasted in communication with XXXX. 
Lack of Clarity : XXXX 's published legal terms and communications seem to lack transparency about physical check refunds and potential lengthy delays.

Company response to consumer: Closed with explanation