Consumer complaint received 2025-04-15 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:
On XX/XX/year>, PayPal temporarily limited my account. I promptly submitted all requested documentation, and the limitation was lifted the next day ( XX/XX/XXXX ). On XX/XX/XXXX, my account was limited again for a different reason. I contacted customer service and the account was reinstated over the phone the same day. However, on XX/XX/year>, my account was limited again for the same issue as XX/XX/XXXX, even though there was no new activity or change in account behavior. Shockingly, on XX/XX/XXXX, I received an email stating my account had been permanently banned, and PayPal has refused to reverse this despite my prior compliance and resolved disputes. They also stated that funds would be held for 180 days. 

Then on XX/XX/year>, PayPal removed {$490.00} USD from my account claiming it was to resolve a negative balance. However, this amount directly relates to a chargeback case that is still open and under review. Per PayPal 's own messaging, Your buyer has filed a chargeback with their financial institution reporting that the item they received wasnt as described. Until we resolve this issue with the buyers financial institution, weve placed a hold on the transaction amount. Despite the case not being closed, PayPal withdrew the full amount from my available balance. The buyer opened a dispute XXXX minutes after the package was delivereda timeframe that makes it logistically impossible for the item to have been authenticated at a XXXX store. Despite providing extensive evidence to PayPal ( including screenshots showing the buyer relisted the exact same bag for a higher price on her XXXX account ), the dispute is still under review, and PayPal has failed to uphold its Seller Protection Policy. Evidence submitted includes : Screenshots of my original listing and the buyer 's purchase confirmation. 
Screenshots of the buyers new listing of the same bag under her XXXX username, showing intent to resell it. 
Messages from another seller who confirms this buyer has used similar tactics in the past ( XXXX closed that case in favor of the seller ). 
XXXX written response confirming this transaction would not qualify for a refund under their platform rules. 
Tracking info proving the XXXX window between delivery and the buyers dispute. 
A request to the buyer to provide authentication documentation, which they failed to do. 

Despite my clear documentation and good standing as a seller with XXXX successful transactions in XXXX month and XXXX prior issues, PayPal has placed a hold on the transaction and has not protected me against this fraudulent buyer. This case involves buyer abuse, platform negligence, and a failure to uphold policies meant to protect sellers from fraud. 

As of XX/XX/XXXX, my account balance was {$890.00} CAD. I have only had one dispute resolved so far for {$16.00} USD, which included a {$30.00} dispute fee. That fee is unreasonable based on my account history and violates their published fee policy. According to PayPals High Volume Dispute Fee policy, a {$30.00} fee is charged only when a seller has over XXXX sales in the past 3 months and a dispute rate of 1.5 % or higher. I am well below the XXXX threshold required to be classified as a high-tier seller. Therefore, I should not have been charged the higher fee. 

In addition, PayPal stated my account is now a " high-tier '' account, but according to their own policy, a permanently restricted account can not be upgraded to high-tier status. A permanent ban means the account is deactivated entirely, and no status upgrade applies. This suggests an internal misclassification that resulted in unfair penalties and seizure of funds.

To clarify, I use PayPal to sell legitimate, pre-loved items via XXXX, and all transactions are processed through XXXX & XXXX with tracking numbers provided. I am a licensed dental hygienist, and I rely on PayPal to manage occasional side income. Nothing about my account activity warranted a permanent ban, let alone premature seizure of funds tied to an unresolved case. This seems like an error or internal mishandling of my account.

Company response to consumer: Closed with explanation