Consumer complaint received 2025-12-01 00:00:00
Product: Prepaid card — General-purpose prepaid card
Issue: Problem with a purchase or transfer — Charged for a purchase or transfer you did not make with the card
Company: Paypal Holdings, Inc
State: MD

Complaint narrative:
CFPB Complaint Unauthorized XXXX  XXXX  Transactions/ PayPal Debit Mastercard To whom it may concern, My name is XXXX XXXX and I am filing a formal complaint regarding PayPal and the PayPal Debit Mastercard issuer for failing to properly investigate and refund multiple unauthorized transactions made to a merchant called XXXX  XXXX  in XXXX and XX/XX/year>. These charges were made without my knowledge or permission. 

Despite providing documents, screenshots, and a written response from the merchant stating the charges are not mine, PayPal repeatedly denied my disputes or closed them incorrectly. I am requesting intervention to enforce my rights under the Electronic Fund Transfer Act ( EFTA ) and Regulation XXXX. 

Summary of the Unauthorized Transactions XX/XX/year> Two unauthorized payments My PayPal Debit Mastercard was used at XXXX  XXXX, XXXX  XXXX  NJ on : XX/XX/year> XXXX USD XX/XX/year> XXXX USD These were not authorized, and I have statement evidence confirming both withdrawals. 

XX/XX/year> Five unauthorized payments When I first checked my XXXX activity page, I saw a XXXX XXXX  charge and filed a dispute immediately. 
Later, when I checked the full All Cases section, I discovered five XXXX XXXX XXXX charges, all of which were : Closed in the sellers favor Without investigation Without considering the merchants written email stating the transactions were not mine Without acknowledging the XXXX pattern The XXXX unauthorized debits include : Four charges of XXXX USD One charge of XXXX USD ( Exact amounts visible in the attached screenshots. ) This brings the total number of fraudulent XXXX XXXX transactions to seven. 

PayPals mishandling and contradictory case closures PayPal has taken the following actions : 1. They denied my first dispute within four days. 

Reason : they claimed the activity was consistent with prior history. 
This is incorrect. I have never used XXXX XXXX in my life. 

2. They closed one case in my favor but never refunded me.

Screenshot attached. PayPal marked the case Case was closed in your favor, but no refund was ever issued. 

3. All the XXXX  XXXX  cases for XXXX were closed in the merchants favor, even after : I provided statements I provided transaction history I showed the XXXX pattern The merchant themselves confirmed it is not my activity I clearly stated that my phone may have been compromised 4. I was bounced between PayPal, Mastercard, and the issuing bank. 

Multiple representatives placed notes, hung up, or transferred me. One agent even opened a case and immediately closed it without adding evidence.

5. PayPal failed to provide provisional credit, which is required by law if their investigation needs more time.

Merchant response confirming the activity is not mine I contacted XXXX XXXX directly and they apologized, stating clearly that : The transactions were not associated with my account I needed to contact my card issuer for a refund They can not help because the transactions were not mine This directly contradicts PayPals position.

Why this violates Regulation E Under Regulation E, the issuer must : Conduct a reasonable investigation Provide provisional credit if the investigation is not complete within ten business days Provide clear reasoning for denial PayPal did none of these.

Instead : They denied the dispute in four days They closed cases inconsistently They ignored merchant verification They claimed the charges were consistent with my history despite no evidence They did not review the full scope of the fraud They failed to link the XXXX and XXXX events PayPals handling is a direct violation of the EFTA. 

Requested Relief I respectfully request the CFPB to require PayPal and the issuing bank to : Refund all seven unauthorized XXXX XXXX  transactions ( XXXX and XXXX ). 

Issue written confirmation and correction of all mishandled disputes. 

Provide a complete investigation summary per Regulation E. 

Ensure no negative reporting or flags are placed on my account. 

Attached Evidence I am attaching : The XX/XX/year> statement showing two XXXX XXXX charges Screenshots of the five XX/XX/year> XXXX XXXX dispute denials Screenshot where PayPal says a case was closed in my favor with no refund The merchant email confirming the transactions are not mine My PayPal dispute history My written notes and timeline Thank you for your time and assistance. I am requesting a full investigation and a refund of all seven unauthorized transactions. 

Sincerely, XXXX XXXX  Email : XXXXXXXX XXXX XXXX XXXX XXXXXXXX Phone : XXXX

Company response to consumer: Closed with monetary relief