Consumer complaint received 2026-01-23 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: IL

Complaint narrative:
On XX/XX/XXXX, I attempted to send {$1000.00} through PayPal using the Friends and Family option. I selected the recipient email address using a copy account number option from XXXX XXXX. The email address I copied was : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX I believed this was the correct recipient at the time. 

I noticed the mistake immediately. I immediately called PayPal and filed a dispute the same day, reporting that the first {$1000.00} payment had gone to the wrong email address. 

I requested that the payment be stopped by my bank because it was not authorized to the unintended recipient. I immediately sent a second {$1000.00} payment to the correct email address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( with an underscore ) Following the first payment, PayPal sent a confirmation email stating the funds would be sent by XX/XX/XXXX, which implied that there was still time to fix the issue and was not clear that the funds were immediately advanced and did not provide an option to retract the payment. Despite this timeline shared by PayPal and the immediate dispute filed, PayPal appears to have completed or advanced the funds to an unintended recipient anyway, and is now holding me financially responsible. 
Because the issue was not resolved and I was trying to prevent funds from going to the wrong person, I also stopped the payment through my bank. After doing so, PayPal placed my account into a negative {$1000.00} balance ( additional {$4.00} ) due to processing fees. 

Adding to the confusion, PayPal has sent confirmation emails referencing a completely different email address as the recipient of the funds : XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I do not know this person and did not authorize a payment to this address. I have requested XXXX return the money through email and PayPal chat multiple times to no response. PayPal also has shared that XXXX said he refunded the money ( but did not ) to they have tried to contact XXXX but has not shared any proof this has taken place. 

I have also received conflicting information from PayPal about the timing of the payment : An email dated XX/XX/XXXX states the funds were paid to XXXX. following the closure of my dispute which aligns with messaging from a PayPal representative that the funds were being held while investigated. 
I was also told separately that XXXX received the funds on XX/XX/XXXX and the money was fronted to XXXX which is causing the negative balance on my PayPal account. 

Main concerns : I did not knowingly authorize a payment to the unintended recipient. 
I noticed the mistake immediately, corrected it by paying the correct person, and contacted PayPal immediately. 
I filed a dispute the same day and requested that the incorrect payment be stopped. 
I have been in communication with PayPal and their partner company consistently since this happened and have been told different things from your money is safe and we held it since you disputed to there is nothing else we can do as your case it closed. 
PayPals confirmation email implied there was still time to fix the payment from initial confirmation of the " by XX/XX/XXXX delivery of funds '' and via their support center call representatives. 
PayPal still chose to release or advance the funds. 
PayPal is now placing the financial burden on me by creating a negative {$1000.00} balance and internal collections communications. 
PayPals own communications reference two very different recipient email addresses, creating serious uncertainty about where the funds actually went. 
I have not received a clear investigation outcome or consistent explanation despite repeated attempts to resolve this.

Company response to consumer: Closed with explanation