Consumer complaint received 2026-01-08 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Skrill USA, Inc.
State: TX

Complaint narrative:
I am submitting this complaint regarding Paysafe Payment Processing Solutions LLCs improper and unjustified actions involving a legitimate card-present transaction, the subsequent lock of my merchant account, the withholding of earned funds, and the denial of a valid refund without lawful justification. 

Owner : XXXX XXXX XXXX name : XXXX XXXX XXXX  ID number : XXXX Phone : XXXX Email : XXXX The transaction at issue is identified as follows : Transaction No. XXXX ; sale date XX/XX/XXXX ; amount {$3700.00} ; XXXX card ending in XXXX ; authorization code XXXX. This was a card-present transaction processed in person at my place of business. 

On XX/XX/XXXX, the same day as the original sale, I initiated a refund back to the original card using the same transaction number. The refund authorization code was XXXX. At the time the refund was submitted, my merchant account was still open and active, which allowed the refund to process through the system. The account had not been closed. 

Despite this, the refund was manually denied. XXXX XXXX has stated that Paysafe is the entity holding the refund. However, Paysafe has failed to provide any written explanation, method of verification, or factual basis for refusing to release the refund or the funds. 

I have contacted all parties involved, including Paysafe, XXXX XXXX, and XXXX, both by phone and in writing, repeatedly requesting a method of verification explaining how this transaction was determined to be fraudulent. To date, no party has provided this information. No one will explain what investigative steps were taken, what criteria were applied, what documentation was reviewed, or what evidenceif anysupports the fraud determination. 

Although the contracts referenced by the processor state that funds may be held for up to 180 days, those provisions do not eliminate the obligation to provide a method of verification and a factual explanation for the decision. I have a right to know how this transaction was verified as fraudulent, particularly when my business was fully verified during onboarding and this was my first transaction. 

The customer has fully cooperated and provided written documentation from his card issuer confirming that the transaction was not fraudulent, was not flagged, was not disputed, and that Paysafe, XXXX XXXX, and XXXX did not contact the issuer to verify or investigate the transaction. I have this documentation in writing. As of XX/XX/XXXX, the issuer confirmed the transaction was not fraudulent. 

On XX/XX/XXXX at XXXX AM, I contacted XXXX XXXX Customer Service and was informed the matter had already been denied, despite never receiving written notice. I was advised the denial stands, that a review may or may not occur in 90 days, and that funds may be held for up to 180 days with no guarantee of release. 

As a small, independent business, the withholding of these funds has caused direct and measurable financial harm, including utility shutoff at my shop, borrowing funds to restore service, late rent, and falling behind on essential operating expenses.

Company response to consumer: Closed with explanation