Consumer complaint received 2025-10-31 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Managing, opening, or closing your mobile wallet account — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
On XX/XX/year>, Paypal restricted my account, preventing me from conducting any transactions using Paypal. Paypal alleges a violation of the Acceptable Use Policy, but refuses to specify the provision violated, or the action that constituted a violation. I have reviewed the Acceptable Use Policy, and dispute the allegation that I have violated it.

In phone calls and online chat conversations over the past month, Paypal has repeatedly refused to provide any additional information. 

It is relevant to note that on XX/XX/XXXX, I was the intended recipient of a large transaction that failed to complete. The sender had funds for the transaction in their balance, and opted to pay with their balance, but Paypal instead repeatedly attempted to charge the sender 's bank, resulting in a failed transaction. I strongly suspect that this failed transaction appears to indicate a high risk associated with my account ; however, the transaction failed due to an error by Paypal ( charging the sender 's bank rather than their balance ). If this is indeed related to the restriction on my account, it is manifestly unreasonable to restrict my account due to an error by Paypal.

Relatedly, Paypal also closed my credit card account, citing high risk of failure to pay. I have paid my balance on time and in full every month.

I strongly suspect that Paypal has used vague and false references to an alleged violation of the Acceptable Use Policy as cover to restrict my account due to a perceived ( but incorrect ) risk level. Paypal has also used an unnecessarily complicated resolution process for this issue, to the point that even a Paypal supervisor told me he was sending a recommendation to the appropriate team that the restriction be removed, because he did not see any activity that seemed to violate the Acceptable Use Policy. That recommendation was declined, without any stated basis. 

On XX/XX/year>, after calling Paypal customer service for the third time and being told that they would not provide further information, I emailed XXXX, and XXXX, requesting that they either remove the restriction on my account, or provide the specific provision of the Acceptable Use Policy Paypal believes I have violated, and the factual basis for that belief, and confirm that the failed transaction on XX/XX/XXXX is not impacting Paypal 's perception of the risk associated with my account. I have not received a response to that email.

In conclusion, Paypal has engaged in unfair and deceptive practices, including restricting an account due to a perception of risk resulting from Paypals own error, and making false statements regarding the reason for the account closure. Paypal has also flatly refused to engage in meaningful discussion of this dispute, providing access only to customer service representatives who do not possess any relevant information or authority, and denying any communication with the individual ( s ) responsible for the disputed decisions.

Company response to consumer: Closed with explanation