Consumer complaint received 2026-03-24 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
I am a seller who was the victim of return fraud facilitated by PayPal. A buyer purchased a pair of authentic XXXX XXXX jeans from me for {$2900.00}. After using the item for a month, the buyer filed a fraudulent " Item Not as Described '' ( INAD ) claim with PayPal. Despite my evidence that the buyer used the item for an extended period, PayPal forced the return. When the item was returned, I received a completely different pair of counterfeit jeans. They were two sizes larger than the original purchase and failed third-party authentication. I immediately notified PayPal of the fraud upon receipt of the package and submitted evidence, including authentication reports proving the returned item was fake and not the item I originally sent. Despite my repeated evidence and a clear violation of PayPals own Seller Protection policy ( which requires buyers to return the original item in the original condition ), PayPal issued the buyer two separate refunds totaling {$2900.00}. The buyer has effectively stolen my authentic merchandise and retained it, while PayPal forcibly took the funds from my account. Chronology of Events : Sale Date : XX/XX/XXXX Original Transaction : The buyer paid {$900.00} then {$2000.00} = {$2900.00} for authentic XXXX XXXX jeans. . I mailed them to the customer on XX/XX/XXXX via USPS : Tracking XXXX shows the jeans being delivered on.XXXX. XX/XX/XXXX A Fraudulent Claim : Approximately one month after receiving and using the jeans, the buyer filed a dispute with PayPal claiming the item was not as described. Forced Return : PayPal instructed the buyer to return the item. I received the package on XX/XX/XXXX. Return Fraud Discovered : Upon opening the package, I discovered the buyer did not return my authentic jeans. Instead, they sent a pair of counterfeit jeans that were two sizes too big and visibly different from the original sale item. Evidence Submitted to PayPal : I immediately submitted evidence to PayPal, including : 1. Photographs comparing the original authentic item against the fake, oversized item returned. 2. A third-party professional authentication certificate proving the returned item was counterfeit. 3. Documentation showing the buyer had possession of the item for over a month before claiming an issue ( indicating use/acceptance ). PayPals Failure : Despite receiving this evidence proving the buyer committed return fraud ( mail fraud/wire fraud ), PayPal closed the case in the buyers favor. They issued the buyer two separate refunds : {$900.00} and {$2000.00}, totaling {$2900.00}. Escalation Attempts : I have attempted to resolve this with PayPal directly. They have engaged in a pattern of delay tactics, asking for " more information '' repeatedly. I have provided them with a local police report ( XXXX ) and a report to the FBI IC3 ( XXXX ). Despite providing these reports, PayPal continues to stall and refuses to reverse the fraudulent chargeback. Why This Violates PayPals Obligations : 1. Failure to Enforce Seller Protection : PayPals policy states that sellers are protected if they provide proof of delivery and the buyer returns an item. The policy explicitly requires the buyer to return the original item. The buyer did not return the original item ; they returned a counterfeit. PayPal ignored this fact. 2. Facilitation of Fraud : By refunding the buyer while allowing them to keep the authentic {$2900.00} merchandise ( and sending back a fake ), PayPal has incentivized and facilitated criminal fraud ( mail fraud/wire fraud ). 3. Lack of Reasonable Investigation : Instead of reviewing the clear evidence ( authentication report, size discrepancy, photos ) provided immediately upon receipt of the return, PayPal delayed the case and eventually ruled against me without acknowledging the evidence of return fraud.

Company response to consumer: Closed with monetary relief