Consumer complaint received 2025-11-17 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
COMPLAINT FILED AGAINST : PAYPAL Date of Submission : XX/XX/year> Complainant : XXXX. XXXX XXXX  XXXX XXXX XXXX. 
Card  Account Affected : XXXX XXXX ( ending in XXXX ) Disputed Amount : {$6300.00} Transaction Date : XX/XX/year> ( Date of Card Debit ) EXECUTIVE SUMMARY This complaint concerns two critical failures : 1. Unauthorized Charge : PayPal unilaterally and without authorization debited {$6300.00} from my XXXX XXXX credit card ( ending in XXXX ) on XX/XX/year>. This action occurred after I had explicitly directed PayPal to use my bank account, placed a stop payment, and filed a formal dispute. 
2. Erroneous Payment Denial : PayPal refused to cancel the erroneous fund transfer, which was reported as a mistake to PayPal and the recipient within five minutes, resulting in an unjust loss of funds to an unknown party. 
We demand a full refund of {$6300.00} to the XXXX XXXX account ending in XXXX. 
DETAILED FACTS I. The Error and Immediate Cancellation Attempt ( XX/XX/year> ) On the night of XX/XX/year>, I attempted to send a payment of {$6300.00} to a legitimate vendor, XXXX XXXX XXXX, using PayPal, intending for the funds to be drawn from my business bank account ( ending in XXXX ). 
1. Mistaken Recipient : When I entered the recipient 's name, PayPals interface automatically suggested the email address XXXX. I mistakenly clicked this suggested address, believing it belonged to my vendor. ( The correct vendor 's email is XXXX ). 
2. Immediate Notification : Within five minutes of completing the transaction, my actual vendor confirmed they had not received the funds. Upon review of the receipt, the error was identified ( the money was sent to the incorrect email XXXX ). [ Exhibit XXXX ] XXXX. Cancellation Request : I immediately contacted PayPal to explain the situation and requested the transaction be canceled. PayPal refused to cancel the transaction and directed me to file a dispute at their Resolution Center, which I promptly did. I also placed a stop payment on the transaction at my bank. 
4. Recipient Behavior : The recipient of the mistaken funds, XXXX, refused to return the money, claiming a suspicion of " scamming '' and stating they would keep the funds for three weeks. This party is an unknown entity to me ; I have never conducted business with or purchased any services from XXXX. [ Exhibit XXXX ] XXXX. Unauthorized Credit Card Debit ( XXXX XXXX XXXX ) Despite my immediate dispute filing, my instructions to use a bank account, and the placed stop payment, PayPal proceeded to debit the funds from an unauthorized source. 
1. Bank Denial : My bank account declined the electronic funds transfer as a result of the stop payment I initiated. 
2. Unauthorized Charge : On XX/XX/year>, PayPal arbitrarily and without my consent or authorization debited the full {$6300.00} from my XXXX XXXX credit card ending in XXXX. This debit was made five days after I filed the formal dispute, fully explaining the error and my attempt to cancel the payment. [ Exhibit XXXX ] XXXX. Inconsistent Dispute Resolution by PayPal PayPal 's arbitrary handling of my mistake demonstrates unfair practice. 
XXXX. Partial Refund : On XX/XX/year>, PayPal accepted my claim and issued a full refund of {$3500.00} for a second transaction that was also mistakenly sent to the same wrong recipient ( XXXX ) as part of the initial payment attempt. [ Exhibit XXXX ] XXXX. Denial of Primary Claim : However, PayPal simultaneously denied the claim for the {$6300.00} transfer, despite both payments being : o Made on the same date ( XX/XX/year> ). 
o Sent to the same erroneous recipient ( XXXX ). 
o Initiated due to the same clerical error ( PayPal 's suggested email ). 
o Reported for cancellation within five minutes. 
The decision to refund one payment but deny the other is inconsistent, arbitrary, and demonstrates a failure to fairly resolve a clear consumer error and a clear case of unauthorized use of a funding source. The merchant who received the money is not entitled to it, and PayPal is wrongfully withholding my funds. 
RESOLUTION DEMANDED 1. I demand that PayPal reverse their decision on the claim and issue a full refund of {$6300.00} based on the prompt notification of error, the immediate cancellation request, the demonstrated inconsistency in their claim resolution, and the fact that the funds were sent to an unknown party who is not entitled to them. 
2. The full amount of {$6300.00} must be refunded to my XXXX XXXX card ending in XXXX. Alternatively, my business bank account info is : XXXX  : XXXX  XXXX XXXX XXXX XXXX, La XXXX, CA XXXX Account Holder : XXXX  XXXX XXXX XXXX XXXX XXXX. 

Routing No. : XXXX Account XXXX. : XXXX XXXX : XXXX XXXX. I also demand that PayPal disclose the contact information of XXXX who is holding my fund by forging a false invoice, knowing he has no right to the fund, since it clearly constitutes the criminal act of theft.

Company response to consumer: Closed with explanation