Consumer complaint received 2026-04-21 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
Company : PayPal , Inc . Issue : Improper dispute handling, unauthorized reversal, unfair fees, Seller Protection violation Product : Payment services What happened : On XX/XX/year>, I sold {$10000.00} worth of electrical equipment to XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX a buyer who paid through PayPal. PayPal placed a temporary hold on the funds, but I complied with all requirements and shipped the merchandise to the buyers confirmed address. I provided PayPal with complete documentation, including : XXXX tracking numbers Delivery confirmation Adult signature confirmation Photos of the packages and labels Screenshots of the buyer acknowledging payment and shipment A paid invoice for the full {$10000.00} Messages showing the buyer requested the items, agreed to the price, and coordinated shipping Despite this overwhelming evidence, the buyer filed a false Item Not Received dispute. I submitted all proof showing the items were delivered and signed for. PayPal ignored the evidence, closed the case in the buyers favor, and removed {$10000.00} from my account. I lost both the merchandise and the funds. After wrongfully reversing the transaction, PayPal also attempted to charge me over {$400.00} in additional fees, even though the dispute was caused by buyer fraud and I fully complied with PayPals Seller Protection requirements. PayPal then sent me a notice stating, You cant use PayPal anymore, restricted my account, and stated I am no longer eligible for Seller Protection. This appears retaliatory and occurred immediately after I submitted evidence proving the buyer committed fraud. This situation involves multiple violations : 1. PayPal violated its own Seller Protection Policy Seller Protection covers Item Not Received disputes when the seller provides valid tracking and signature confirmation. I met every requirement. PayPal has not identified any valid exception that would justify denying Seller Protection. 2. PayPal imposed improper fees Charging me additional fees after wrongfully reversing the transaction is unfair, punitive, and inconsistent with PayPals published terms. 3. PayPal enabled buyer fraud The buyer received {$10000.00} in merchandise, signed for it, and still received a full refund. PayPals refusal to honor Seller Protection directly facilitated theft. 4. PayPal restricted my account without cause After I submitted evidence proving delivery, PayPal permanently restricted my account and stated I could not use their services anymore. This appears retaliatory and abusive. 5. PayPal has refused to provide a clear explanation I have not received any meaningful justification for the denial, the fees, or the account restriction. This appears to be an unfair, deceptive, or abusive act or practice ( UDAAP ). -- - What resolution I want : Full reinstatement of the {$10000.00} Removal of all improper fees Reversal of the wrongful account restriction Written explanation for why Seller Protection was denied despite signatureconfirmed delivery Correction of PayPals dispute handling and compliance failures PayPals actions caused a financial loss of over {$10000.00} and enabled clear buyer fraud. I am requesting the CFPBs assistance in resolving this matter.

Company response to consumer: Closed with explanation