Consumer complaint received 2026-04-30 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
On XX/XX/XXXX, I used my PayPal account linked to my XXXX XXXX XXXX account to send {$1500.00} to my husbands PayPal account so he could transfer it into our joint XXXX XXXX XXXX account. We needed the funds that weekend, and because his XXXX was still tied to an old phone number, PayPal was the only available option. We had not used PayPal in some time, so the backup payment method on file was an old debit card from a closed account. The transfer to XXXX completed the next day. PayPal did not attempt to withdraw the funds from XXXX until XX/XX/XXXX. XXXX rejected the withdrawal for insufficient funds, even though the account had a balance of {$1500.00} at the time. PayPal attempted to pull the funds in two separate transactionsone for {$1400.00} and one for $ XXXX simultaneously. Because the transaction was split, XXXX system temporarily reduced my minimum balance from {$5.00} to {$4.00}, causing both withdrawals to be rejected despite the full amount being available. I contacted XXXX several times, and they provided documentation on letterhead along with a tracer number confirming that the funds were available on XX/XX/XXXX. I submitted this documentation to PayPal on XX/XX/XXXX. During that call, I was told that PayPal recognized the error, would reverse the negative balance, and would not attempt to withdraw funds from my bank. Despite that, on XX/XX/XXXX PayPal attempted to withdraw {$1400.00} from my XXXX account. The account had {$2000.00} in it earlier, but I transferred those funds out on XX/XX/XXXX. It is possible that XXXX system lagged again and did not reflect the outgoing transfer until days later, which may explain why PayPals withdrawal appeared to clear even though the funds were no longer available. Because the account updated after the withdrawal processed, it left my XXXX savings account with a negative balance of {$1400.00}. At this point, neither XXXX nor XXXX can clearly explain why the timing and balance information did not align. On XX/XX/XXXX, I contacted PayPal again and resubmitted the tracer and the formal letter from XXXX confirming that sufficient funds were available on XX/XX/XXXX. I requested that PayPal reverse the {$1400.00} withdrawal so I could restore my XXXX account. After being placed on hold for approximately 30 minutes for a manager, the manager finally came on the line, refused to reverse the XX/XX/year> charge, andan hour laterclaimed her system had crashed, said she would call me back in five minutes, and then disconnected. She never called back. I contacted XXXX again, and they submitted a request to their ACH department to provide proof of the XX/XX/XXXX attempted withdrawal and the available balance at that time. They also informed me that I do not qualify for a dispute because the funds were available and the issue originated with PayPals split transaction. On XX/XX/XXXX, I attempted to contact PayPal again and was placed on hold for 45 minutes before the call disconnected while I was waiting for another manager. The account had {$1500.00} in it on XXXX XXXX to cover the PayPal transferand we received the money in XXXX. PayPal needs to reverse the {$1400.00} they withdrew on XX/XX/XXXX so I can restore my XXXX account, which is now negative solely due to PayPals error and the unresolved system discrepancies between PayPal and XXXX.

Company response to consumer: Closed with explanation