Consumer complaint received 2026-01-08 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: NY

Complaint narrative:
I made an online purchase from the merchant XXXX on XX/XX/XXXX, totaling {$140.00}, paid through PayPal. After receiving the order, I returned multiple items using XXXX  authorized return process. Return tracking confirms the items were delivered back to XXXX, and the merchant confirmed receipt of the returned merchandise. 

A separate PayPal dispute was opened on XX/XX/XXXX, for items from the same order that were not received. That dispute did not involve the items that were returned. As part of that dispute, PayPal issued a partial refund of {$20.00}. The remaining amount of {$120.00} relates to items that were returned and accepted by the merchant. 

On XX/XX/XXXX, after confirming receipt of the returned items, XXXX stated through customer service chat that a refund for the returned merchandise would be issued once the PayPal dispute was finalized. At that time, XXXX did not state that any coupon, promotion, or Discount Dash activity would affect or eliminate the refund. 

The PayPal dispute was closed on XX/XX/XXXX. After the dispute was closed, XXXX reversed its position. XXXX then stated through customer service chat that my refund would be reduced to {$0.00} due to an alleged coupon or promotional recalculation and that the refund would be issued only as points or cashback, not as a monetary refund. Immediately after communicating this, the XXXX customer service agent ended the live chat. 

When I attempted to reopen the chat to seek clarification or escalation, XXXX  system no longer allowed me to speak with another live agent. The system now reflects that no refund has been issued at all ( {$0.00} ) for the returned items, despite the merchant having possession of the returned merchandise. 

I contacted PayPal customer service multiple times by phone and through support channels to report that the merchant had accepted the returned items, confirmed receipt, and was refusing to issue a monetary refund for the remaining {$120.00}. I informed PayPal that XXXX initially stated a refund would be issued after the dispute was finalized and then reversed its position after the dispute was closed. I also informed PayPal that XXXX provided conflicting refund amounts ( {$0.00} versus {$0.00} ). 

I called and requested that PayPal reopen the dispute, review the matter, and enforce buyer protection for returned merchandise not refunded. I offered to provide return tracking, proof of delivery, and the chat transcript showing XXXX  confirmation that a refund would be issued after the PayPal dispute. PayPal declined to reopen the case, refused to review the evidence, and did not provide assistance to recover the remaining funds. 

As a result, I am unable to access {$120.00} that should have been refunded for merchandise that was returned and accepted by the seller. The merchant has retained both the returned goods and the remaining funds, and PayPal has refused to intervene or enforce buyer protection. This has left me without access to money for returned merchandise despite clear documentation and good-faith efforts to resolve the issue.

Company response to consumer: Closed with monetary relief