Consumer complaint received 2024-11-08 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Unexpected or other fees — 
Company: Paypal Holdings, Inc
State: CA

Complaint narrative:
My friend, an elderly man wanted to send me {$2300.00} via Paypal. 

He requested I help him do it, as he did not know how. I helped him send the money. Paypal charges a fee for commercial money transfers, but not for personal ones ( family and friends ). When we scheduling the transfer, Paypal had an screen asking " What is this for? ", and he did not put anything, because he was just sending me money as a friend. Little did we know, that the transaction went through as one for " good and services '', a commercial money transfer. This transaction was initiated on XX/XX/year>, XXXXXXXX XXXX XXXXXXXX. 

When I received the money on XXXX I noticed I got charged a fee of {$68.00} from Paypal. I called Paypal and explained that this was labeled a " goods and services '' transaction in error ; that it was a transfer from a friend. I requested that they reverse the fee. If they can not reverse the fee, I request to reverse the entire transaction as it is an error. 

They said they can not reverse the transaction or the fee. They stated that if I wanted to send the money back as a " refund '' there may a chance the fee will be reversed, but that is unlikely.

I explained to them that according to 12 CFR Part 1005.11 ( a ) ( 1 ) ( ii ), this transaction qualifies as an " error '' transaction, as it is " An incorrect electronic fund transfer to or from the consumer 's account ; '' because it was erroneously labeled a transaction that is charged a fee ( a commercial transaction ) when it was in fact a personal transaction ( no fee ). 

Paypal stated that it was not an error and that they notified me of the fee. I explained to them that I am informing them this is an error, and I could get my friend on the phone to state he made a good faith effort to label the money transfer correctly, but made an error if it was labeled a commercial transaction. They stated there is no way to reverse this fee, regardless of the Notification of Error ( a clear violation of Regulation E ). 

*Side note- they stated they " notified me of the fee '' because I had transactions like this in the past. I do not dispute that I made commercial transactions in the past. I dispute that this was a commercial transaction, due to an error in classification of the transaction. 

Regardless, my friend should not have to get on the phone to state it was an error. The money was sent to me and when I stated the transaction was erroneously sent to me ( regardless of XXXX XXXXXXXX 's intent ), as I did not " request money '' ( an option on Paypal to request funds ) from my friend, the money just showed up in my account. As I saw an unexpected and undisclosed fee, I requested the money be returned and the fee reversed. Paypal refused. 

I spoke to a customer service associate, and when he could not help he put his manager on the line. When I requested higher management or the compliance department to log a complaint, a " Notice of Error '' ( per 12 CFR 1005.11 ( b ) ) ; the Paypal customer service manager refused, stating there is no one I can speak to about this to log the Notice of Error. 

I was forced to " refund '' the transaction to see if the fee would be reversed. The transaction is currently " on hold '' as the " refund '' is being processed.

Company response to consumer: Closed with explanation