Consumer complaint received 2024-10-16 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

Complaint narrative:
Subject : Complaint Against PayPal as a Payment Processor To Whom It May Concern at the Consumer Financial Protection Bureau ( CFPB ), I am writing to formally file a complaint against PayPal regarding the exposure of my sensitive financial information and the processing of an unauthorized transaction. Despite my efforts to resolve this issue through PayPals Resolution Center with Case ID : XXXX XXXX XXXX encountered significant challenges that have left me deeply concerned. 

On XXXX XX/XX/year>, a payment of {$160.00} USD was made to XXXX through my PayPal account. To my surprise, this payment was debited from a Mastercard that I did not authorize for use with this transaction. This particular Mastercard is only four months old and was set up exclusively for my childrens educational expenses. I did not intend to use this card for any other transactions, including payments to XXXX, and I certainly did not authorize this payment. 

This incident raises serious questions about PayPals role as a payment processor and its responsibilities in safeguarding my financial information. Despite my precautionary measures, including maintaining low balances in my accounts to prevent unauthorized transactions, PayPal allowed a different card to be used without my explicit consent. This suggests a failure in their security protocols and transparency.

Additionally, I would like to highlight a key issue with PayPals Resolution Center : It does not provide a suitable category for filing complaints specifically about PayPals role and functions as a payment processor. Instead, the available categories focus mainly on disputes between the buyer and the seller, such as issues with purchased items or services. This setup effectively prevents users like myself from addressing concerns about PayPals handling of sensitive data and unauthorized transactions. As a result, I was forced to select a category that does not fully represent the nature of my complaint, even though the content of my complaint clearly addresses PayPals mishandling of my financial information and unauthorized processing.

Given the limitations of PayPals Resolution Center and the gravity of this issue, I am seeking the CFPBs assistance in ensuring that PayPal is held accountable for any breach of privacy or unauthorized transaction processing. Specifically, I request the following actions : 1. Immediate cancellation of any recurring payments to XXXX through my PayPal account.

2. A refund of the unauthorized payment made on XXXX XX/XX/year> to XXXX. 
XXXX. A comprehensive review of how this transaction was processed using a different Mastercard than the one I initially used.

To support my complaint, I have attached documentation, including a notification from my bank dated XXXX XX/XX/year>, which alerted me to an attempted payment that was subsequently declined due to insufficient funds. This evidence demonstrates the precautions I take to secure my financial accounts against unauthorized activities. 

Additionally, I would like to request that the CFPB publish my issue with PayPal as a payment processor on consumerfinance.gov so that others can learn from my experience. I believe that sharing this incident publicly will help raise awareness among other consumers and highlight the importance of robust protections when using digital payment platforms.

I trust that the CFPB will assist in addressing these concerns and that PayPal will take the necessary steps to improve its complaint handling process, particularly in matters involving its role as a payment processor. I believe that PayPal must maintain the high standards of security and consumer protection that it promises its users. 

Thank you for your attention to this matter, and I look forward to your prompt assistance. 

Sincerely, XXXX XXXX XXXX : XXXX Email : XXXX XXXX

Company response to consumer: Closed with explanation