Consumer complaint received 2026-05-18 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: OH

Complaint narrative:
Complaint Narrative On or about XXXX XXXX XXXX, PayPal permanently deactivated my business PayPal account ( Merchant ID XXXX, business name XXXX XXXX ) without providing any specific explanation, and subsequently initiated an ACH withdrawal of {$1600.00} from my linked bank account at XXXX XXXX without prior notice or written authorization. Account history : XXXX XXXX has held this PayPal business account in good standing for approximately seven years. I had largely stopped using PayPal in recent years due to high transaction fees and prior issues with held funds and delayed transfers, choosing other payment processors for the majority of business. The XX/XX/year> transactions represented the first significant use of this PayPal account in approximately three years. Sequence of events : XX/XX/year> : Received two legitimate payments from a XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX {$1700.00} in the XXXX ( split as {$100.00} and {$1600.00} ) and {$1700.00} in the afternoon. These were deposit payments against an active SEO and website redesign service contract. The relationship is documented, the client is reachable, and I have confirmed directly with the client that there are no chargebacks, disputes, or reversal requests pending or anticipated. XX/XX/year> : Transferred {$1600.00} of the morning payments to my linked XXXX XXXX account. The transfer completed normally. Verification completed : Prior to deactivation, PayPal requested verification documentation, which I submitted within three hours of the request. I confirmed receipt by phone with PayPal customer service at that time. No additional verification was requested after that point. On or around XX/XX/year> : PayPal permanently deactivated my account. The notice ( Reference ID XXXX ) states the account was " linked to another PayPal account with unresolved issues. '' It does not identify the other account or the nature of the issues. Customer service contact : I called PayPal customer service to seek clarification. The representative was unable to identify which account PayPal was referring to, unable to provide any specific reason for the deactivation, and unable to connect me with the team responsible. I was instructed to email XXXX and told that team has no phone number. Post-deactivation ACH withdrawal : On XX/XX/year>, PayPal initiated an ACH withdrawal of {$1600.00} from my XXXX XXXX account the same amount I had previously transferred from PayPal to my own bank on XX/XX/XXXX. PayPal provided no advance notice, no written explanation, and no itemization of why this amount was being withdrawn. I placed a stop payment order with XXXX on the pending ACH while the transaction was still in pending status. Funds currently held : PayPal continues to hold a balance of {$1600.00} in the deactivated account ( net of fees on the second {$1700.00} client payment ). The deactivation notice states this balance may be held for up to 180 days.Harm : {$1600.00} of XXXX XXXX funds are held by PayPal with no specific explanation provided and a stated hold period of up to 180 days. An additional {$1600.00} was withdrawn from XXXX XXXX XXXX XXXXXXXX business account without prior notice or written explanation ; the stop order is pending and the outcome is uncertain. XXXX XXXX has no other PayPal account, has no chargebacks or disputes pending, and has fully cooperated with all verification requests PayPal has made. PayPal has refused, through customer service, to identify the " other account '' they reference or to provide any documentation of the basis for either the deactivation or the post-deactivation ACH withdrawal.

Company response to consumer: Closed with explanation