Consumer complaint received 2026-05-28 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
I am writing to appeal the permanent limitation placed on my PayPal account and request a full review of my case. I have had this PayPal account for several years but had not used it until recently, when I started using it with my XXXX store to receive customer payments. During the XXXX XXXX months of activity, my sales volume was very small, totaling under {$500.00} overall, and everything on the account was operating normally during that period. This month, my store began receiving increased customer demand, and my sales volume suddenly grew. Shortly after my sales exceeded {$500.00}, PayPal placed my funds on hold and requested additional verification documents, including order tracking numbers, supplier invoices, and identity verification documents. I fully cooperated with all requests and submitted every required document promptly. While the review was ongoing, my store continued receiving new customer orders at a higher-than-usual rate of approximately XXXX orders per day. However, all funds remained under the standard hold, and I continued fulfilling customer orders normally. Every order was shipped successfully, and tracking information was uploaded to PayPal as requested. After waiting approximately XXXX days following document submission, I was surprised to receive a notice stating that my account had been restricted for XXXX days. I strongly believe this action may have been triggered automatically due to the sudden increase in sales activity compared to my previous account history. I still dont understand the reason for the closure of my account and the XXXX hold on my funds. You mentioned that my payment volume suddenly spiked. Yes, it spiked because I started using PayPal for the first time, and that is the reason. Also, you stated that I may be unable to provide the goods or services to my customers. However, how does holding my money help me provide better service? In fact, the hold created additional difficulty, and I had to find extra funds to fulfill the orders, which I successfully did. Your action created a risk of reduced customer satisfaction. However, I managed to secure additional funds and fulfilled all orders quickly. I also provided all requested details, and all orders now have tracking numbers. Some orders are already confirmed by sellers and are no longer on hold. So I still do not understand if the orders are confirmed and there are no issues reported, what is the reason for holding the funds for XXXX days? I respectfully request a manual review of my account. The recent increase in sales reflects genuine customer demand and not any fraudulent or prohibited activity. I am fully willing to provide any additional information or documentation required. PayPal has been an important payment platform for my business, and this limitation has significantly impacted my ability to operate and serve customers. I sincerely hope this matter can be reviewed fairly and the held funds released once all orders are confirmed. Please kindly review my account again. If any additional documents are needed, I am willing to provide anything required. My request is to remove the hold on my funds once all orders are confirmed. I also confirm that I will not use PayPal anymore. Thank you for your time and consideration. I look forward to your response and a fair resolution of this matter.

Company response to consumer: Closed with explanation