Consumer complaint received 2026-01-24 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
State: FL

Complaint narrative:
The email sent to Venmo : I am writing to formally dispute the resolution of a recent case involving my account, as funds have been incorrectly withheld and taken following a mishandled dispute on Venmo 's behalf. I am asking for this matter to be evaluated and reviewed immediately, as the resolution is inaccurate and has caused financial harm. 

To contextualize the situation in which the dispute arose, a table at a club was booked through my friends and I that was worth over {$1000.00}. My friend and her other friends said they wanted to come and would put money towards the table. My friend began to feel sick and could not make it, but her two friends said they still wanted to come and pitch in for the table. To split it evenly, the two girls would have had to pay around {$150.00} each, but I was willing to give them a large discount and they agreed on paying {$70.00} each, meaning a total of {$140.00} for the two girls combined. We agreed on this payment in advance, and the two girls sent the money in advance through her Venmo account. The two girls told me the time frame they were going to arrive at the club as well. My friends and I arrived before the two girls, and since the table was under my name I waited to help them in. After a while one of the girls messaged me saying they were actually going to arrive later than originally planned because their friend had gotten too drunk. I asked again when they planned on arriving and did not receive a response. The two girls never showed up and did not respond to my messages despite the fact I saved spots for them at the table as well as drinks. Later on the next day, she messages me saying her friend got too drunk, and asks for all her money back. I communicated that I had gotten the table for a set amount of people because they had confirmed they were coming and I had no reason to believe otherwise. Beyond that, I had also offered them a discount/more reasonable price at my own expense. I asked if she would be okay with half the money back because we had bought the table for a set amount of people which had cost me extra at my expense ( with her and her friend included ) and they simply chose to not show up that night without messaging me. She agreed that this was fair so I sent {$70.00} of the {$140.00} she originally sent back to her as half her money back. I will attach an image of the transaction where the {$70.00} was sent back to her. She then proceeded to go behind my back and file a dispute for the {$140.00} she had originally sent, even though we had previously agreed on half the money back. Somehow the Venmo dispute ruled in her favor, even though their failure to attend was their choice for reasons unrelated to me, and now I am paying the consequences. I relied on their confirmed attendance for a specific headcount, reserving space and drinks for them and incurring additional out-of-pocket costs, which were not negated by their last-minute decision not to show up. Although I was not required to issue any refund, I acted reasonably by offering a 50 % refund, and issuing it only after she explicitly agreed that this resolution was fair. Venmo disputes are intended to address fraud, unauthorized transactions, or situations where goods or services were not provided due to the seller. In this case, the payment was voluntarily sent for a shared group expense, and the buyers chose not to attend for reasons unrelated to me. As a result, this situation does not meet Venmos own standards or eligibility criteria for a dispute or reversal.

Now, my Venmo account is frozen because of this unreasonable and incorrect dispute. Beyond that, it is taking money that people sent me from other transactions saying I need to pay back a full balance to restore my account, which is completely unacceptable. Given the facts outlined above, I am requesting that this dispute be reopened, reviewed by a supervisor, and resolved correctly. The current decision is inaccurate, inconsistent with Venmos dispute policies, and has resulted in my account being unjustly frozen and additional funds being taken from unrelated transactions. I am asking that my account be immediately restored, the disputed funds be returned to me, and any balance improperly imposed on my account be removed.

Venmo 's Response This is * * * from Purchase Support. I hope all is well! I will take over this ticket for my teammate. Thank you for sending that you have provided the information needed, we can move forward with the next step. Ill take care of this for you!

I see that our Account Specialist emailed you the statements : We've reviewed the information regarding the dispute case and have decided in your buyer 's favor.

The disputed amount will be withdrawn from your Venmo account.

Please make sure you have sufficient funds to cover the amount that will be debited. If you don't have enough funds in your Venmo account to cover the disputed amount, it will result in a negative balance in your Venmo account and you must add funds to your Venmo balance by clicking the button below. 
The following email sent to Venmo : Dear Venmo Support, I am formally requesting escalation of this case to a supervisor and a secondary review of the dispute decision because the current resolution clearly misapplies Venmos dispute eligibility standards. This transaction was not a purchase of goods or services as you have suggested, nor was it a matter of buyer and seller. It was a voluntary, authorized payment for a shared group expense. The payment was sent knowingly and in advance for participation in a reserved table at a club. Space, drinks, and headcount were secured based on XXXX XXXX XXXX XXXX XXXX  confirmation. XXXX XXXX XXXX XXXX XXXX  and her friend later chose not to attend for reasons unrelated to me. Venmo 's dispute eligibility standards states that eligible dispute reasons include unauthorized activity, items not received as described, an item/service not received, and billing errors. None of these reasons applies to this case. Most importantly, personal family and friends payments are not protected by Venmo 's dispute eligibility standards. As this case falls directly under family and friends payments and does not meet any of Venmo 's dispute eligibility standards, I am failing to see how this case could be deceived in the " buyer 's '' favor. 

I acted reasonably and in good faith by offering and issuing a 50 % refund after the girls explicitly agreed this was fair. I have provided proof of the partial refund above. If a full refund is issued after a partial refund was agreed upon and completed as you are suggesting should happen, I am experiencing additional financial losses beyond simply the disputed funds. XXXX XXXX XXXX XXXX XXXX and her friend effectively exploited the dispute process by accepting a partial refund and then initiating a dispute for the full original amount despite having already agreed that a 50 % refund was fair and sufficient. In doing so, the girls are attempting to profit off of me through misuse of the Venmo dispute system. 

Venmo disputes are intended to address fraud, unauthorized payments, or failure to provide goods or services. None of those conditions apply here. When a " buyer '' fails to show up after confirming participation for an authorized payment that was agreed to in advance, it is ineligible by Venmo 's dispute eligibility standards. The girls ' voluntary decision not to attend does not meet Venmos criteria for a reversal of payment, nor does it give them the right to take back more money once a partial refund was completed. 

Venmo 's response : This is XXXX XXXX XXXX XXXX XXXX from Venmo Customer Support. I'll be taking over your ticket from XXXX XXXX XXXX  and I'll be assisting you. I hope you and your family are doing well and healthy. 

Thank you for your patience in working with us to solve this. I was able to see the payment from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  for {$130.00} on XX/XX/year>. Since the dispute was solved by the buyer 's favor, you need to add your balance with the amount of {$120.00} to unfreeze your account on Venmo. 

You can find more information and settle this unrecovered payment by following the prompts in the app. Tap Restore your account to get the process started. Alternatively, you can settle the payment by using a computers browser to visit venmo.com/recover. 

You can use either a debit card or bank account to add money to Venmo and unfreeze your account. A debit card payment ( if successful ) will unfreeze immediately. A bank account payment XXXX take up to XXXX business days to process ( if successful ) before your account is unfrozen. It is also worth noting that you'll receive an email when your account unfreezes. 

Please note : Any payments you receive to your Venmo account XXXX be applied to the money owed. If the payment is equal to or more than the money owed, your account will automatically unfreeze. If you have any questions regarding this process, please let me know. 

Thank you for your patience and understanding. I hope this information helps out a bit. If there are any other questions that I can answer for you regarding this matter, please don't hesitate to reply here. 

The following email sent to Venmo : XXXX XXXX XXXX XXXX XXXX XXXX I am formally disputing the negative balance and requesting escalation to an Account Specialist manager. I will also be filing a complaint with the Consumer Financial Protection Bureau.

This transaction does not meet Venmos dispute eligibility standards, as the payment was authorized, services were provided, was a peer-to-peer payment, and a partial refund was mutually agreed upon and completed. Enforcing a full refund after a completed settlement has caused financial harm and resulted in double recovery for the buyer.

Please provide : 1. Written confirmation that this decision is final after supervisor review.

2. The specific section or policy in Venmos dispute eligibility standards or User Agreement that permits a buyer-favored dispute outcome for a personal, peer-to-peer payment between friends, given that Venmos dispute protections do not apply to personal payments and shared group expenses.

3. Please cite the policy defining when services are considered not provided, in cases where the " buyer '' fails to attend after confirming participation. 

Please confirm escalation and next steps. 

Venmo 's XXXX : I hope you have a great week ahead. 

I'm * * * * from Venmo XXXX ready to help you today. 

Thank you for letting us know about this. I realize why you want these concerns to be fixed as soon as possible because if I were in your position, I think I would feel just as you do. I am aware that this is a tough situation, but rest assured that I will work with you to find the best solution to your concerns. 

I checked it and I can see that the dispute to the payment from - XXXX XXXX XXXX XXXX XXXX XXXX  for {$130.00} on XX/XX/year> was already resolved. 

I know this isnt the outcome you were hoping for. Wed be happy to take another look at this case, but well need some more information in order to do that. Please provide new supporting documents and we can forward them to our Account Specialists for review. 

New information or evidence could include ( but is not limited to ) : Missing information from the previous investigation Receipt or other paperwork Written communication with the merchant I hope this information helps out a bit and if there are any other questions that I can answer for you regarding this matter, please don't hesitate to reply here. We welcome all questions and queries that you want to tell us. 

Have a nice day and take care always.

Company response to consumer: Closed with non-monetary relief