Consumer complaint received 2024-12-03 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Problem with a purchase or transfer — Card company isn't resolving a dispute about a purchase or transfer
Company: Paypal Holdings, Inc
State: OH

Complaint narrative:
On XX/XX/year>, XXXX XXXX purchased a XXXX XXXX XXXX from me on the well known website XXXX, which only allows both buyers and sellers to conduct transactions using PayPal. I sold the device for {$510.00}, and after fees and taxes the buyer paid via PayPal a total of {$550.00}, and I received {$460.00} into my PayPal debit card balance which is a debit card issued through the XXXX XXXX. Well for whatever reason, PayPal froze my account, not allowing me to transfer the money to my other linked checking accounts, use the PayPal debit card to access the funds, or even allow me to refund the buyer due to all the nonsense with PayPal. PayPal requested my identification which they already had when I opened the account, then requested documentation for theee transactions ( the transaction I am filing this complaint about in the amount of {$460.00}, a separate phone sale on XX/XX/year> for {$580.00} which they allowed me to transfer the funds without any issue and the phone was delivered with no issue, and a third transaction for a deposit from XXXX in the amount of {$27.00}. XXXX is an app I use that gives me cash back on all my gas purchases. I opted to have the {$27.00} deposited into my PayPal ). So they not only have put my {$460.00} on hold and are demanding I send the phone and once its marked as shipped by the shipper the hold will be released, but they are now questioning other legal and legitimate transaction on my account. Per XXXX terms and conditions, its within my rights to use the proceeds directly from the sale of a device to pay for the shipping costs. So PayPal is blocking me from doing so. Furthermore, in PayPals user agreement it states Payment review : When PayPal identifies a potentially high-risk transaction, we review the transaction more closely before allowing it to proceed. When this happens, PayPal will place a hold on the transaction and notify the seller to delay shipping of the item. As a buyer, this may delay your receipt of the item you purchased. If we clear the transaction, we will notify the seller and direct them to ship the item. If we don't clear the transaction, we will cancel it and return the funds to you, unless we are legally required to take other action. So PayPal has done the complete opposite of what its own terms state. Instead of telling me to hold the item during the review, they are demanding me to ship it with no guarantee of my account hold being lifted. I told PayPal I understand that buyers deserve protection but sellers also have to be protected and it would be irresponsible to send such a high priced item without having access to the funds. I also told them per XXXX terms, I had the right to access the funds to pay for shipping costs. At this point it has been 5 business days ( past the 3 business days promised ). They wont even allow me to refund the buyer his money. Since I ordered a PayPal debit card and the funds are being held in an account held by the XXXX XXXX, PayPal doesnt have the authority to make decisions regarding the money. They are stealing peoples money and I told them this. The XXXX XXXX  needs to step in and make PayPal unblock my PayPal debit card and allow me access to the funds. There has never been any disputes on my PayPal account, and the only one other item I sold on XXXX was shipped and the buyer received it the next day! So they have no reason to hold the money with concerns of the purchaser not receiving the money. PayPal is not a bank and gets away with way too much defrauding its users. The XXXX XXXX  is a large bank, which is holding my funds hostage. Please make PayPal release the funds for the sake of myself and XXXX XXXX, the purchaser.

Company response to consumer: Closed with non-monetary relief