Consumer complaint received 2026-04-12 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: WI

Complaint narrative:
SUMMARY PayPal, Inc. restricted my account, imposed a 120-day hold on my funds, compelled disclosure of private correspondence with a third-party business, and informed me that I " present a risk to our platform '' after I received a {$64.00} deposit from XXXX, a gift card resale platform that PayPal itself promotes in its own help documentation. The restriction was imposed within hours of a PayPal agent confirming in writing that my account was " fully usable. '' During the chat session in which the restriction was delivered, I disclosed twice that I am a terminally ill, end-stage XXXX XXXX patient on continuous IV life support medication and that the {$64.00} was the difference between eating or not eating. The agent acknowledged the disclosure, took no escalation action, and returned to script. PayPal has refused to identify any specific policy, term of service, or legal basis for the restriction. A. ACCOUNT BACKGROUND AND PAYPAL 'S INITIAL INSTRUCTION On or about XX/XX/XXXX or XXXX, 2026, I applied for a PayPal XXXX XXXX through my existing PayPal account. The application was rejected on the basis that my Social Security XXXX was allegedly associated with another account. I contacted PayPal support, and an agent instructed me to close and reopen my account to " reset '' the issue. I followed that instruction. B. AGENT XXXX 'S " FULLY USABLE '' REPRESENTATION ( XX/XX/year> ) On XX/XX/year>, I attempted to reapply for the Debit Card and was directed to contact support again. I disclosed to the agent that I had previously operated a business that XXXX have used PayPal. XXXX XXXX informed me I was not eligible for the card at this time, but stated clearly and in writing that my account was " fully usable '' and that I could " send and receive payments, shop online wherever PayPal is accepted, and move funds using your linked bank account or card. '' This representation was unambiguous. It confirmed that my account was in good standing and that I could transact freely, including receiving deposits and moving funds to my linked bank account. XXXX XXXX XXXX AND IMMEDIATE RESTRICTION ( XX/XX/year> ) On XX/XX/year>, at approximately XXXX AM CT, a {$64.00} deposit from XXXX posted to my PayPal balance. XXXX is a legitimate gift card resale platform. I had sold a XXXX XXXX gift card I had received. This is a legal transaction with a legal company. I attempted to transfer the funds to my linked checking account. Within hours of the deposit posting, PayPal flagged my account and presented me with a set of XXXX steps it described as necessary " to secure my account. '' The window between XXXX XXXX 's written confirmation that the account was " fully usable '' ( XX/XX/XXXX ) and the account restriction ( XX/XX/XXXX ) was approximately XXXX hours. The only intervening variable was the XXXX deposit. XXXX THE 8-STEP PROCESS I completed all 8 steps. Four were identity verification measures : email verification ( already completed ), facial recognition using my driver 's license, verification of two linked card transactions with 4-digit codes, and providing the full number of my new XXXX XXXX debit card. Step XXXX required me to photograph my driver 's license again for address verification, duplicating the document already provided during facial recognition. Steps XXXX and XXXX are the most significant. PayPal required me to provide a written synopsis of the {$64.00} XXXX transaction, including copies of all transaction-related emails between myself and XXXX, and the same for an earlier XXXX deposit. These steps had nothing to do with identity verification. They compelled me to explain what XXXX is as a business, describe how the transaction worked, and surrender my private correspondence with a third-party company. PayPal conditioned my access to my own funds on the production of this information. I complied because I needed the {$64.00} to buy groceries. XXXX PAYPAL 'S OWN PROMOTION OF CARDCASH ( XXXX ) PayPal 's own help documentation actively directs its users to XXXX. PayPal XXXX XXXX XXXX, currently live at XXXX XXXX XXXXXXXX, states in plain language that users can " exchange unwanted gift cards for cash in your PayPal balance via XXXX. '' The page provides step-by-step instructions : go to XXXX, enter the merchant 's name and balance amount, click GET OFFER, connect with PayPal, and receive XXXX PayPal balance. I followed this exact process. PayPal is marketing XXXX as a feature of its platform while simultaneously restricting accounts that use it and compelling consumers to justify the very transactions PayPal promoted. XXXX XXXX XXXX 'S CONDUCT : THE DUAL-FRAMING CONTRADICTION ( XX/XX/year> ) PayPal XXXX XXXX delivered XXXX account restriction via live chat on XX/XX/year>, beginning at approximately XXXX AM CT. I have preserved timestamped screenshots. XXXX XXXX XXXX contradictory framings of the same restriction within the same conversation. XXXX XXXX ( XXXX ) : XXXX stated : " Your account is temporarily blocked. We noticed a new PayPal account has been created using your name. We understand this might be concerning, and we want to make sure you're aware of it. For now, some of your account features are temporarily blocked. '' She further stated : " To protect your account, some of your account features have been blocked. Although you can still receive money, you are blocked from the following ... '' This framing presents the restriction as a protective measure, as though PayPal were safeguarding me from identity theft. XXXX XXXX ( XXXX ) : Later in the same conversation, after I disclosed my medical condition, XXXX delivered a fundamentally different characterization : " After a thorough review of your account, we've determined that it presents a risk to our platform. We regularly review all accounts on our platform, and if we identify any potential risk to PayPal, our customers, or our banking partners, an email is sent to notify you that you can no longer use our services. To help protect our security systems, we're unable to disclose the specific details of the risk identified. Any funds in this account will be held for 120 days to help minimize the risk to PayPal from customers who may file disputes or chargebacks. '' These are opposite characterizations delivered by the same agent in the same session. One says PayPal is protecting me ; the other says PayPal is protecting itself from me. The only variable that changed between the XXXX framings was my disclosure of my terminal medical condition and the urgency of my need for funds. The phrase " presents a risk to our platform '' accuses me, as a person, of being a threat to PayPal. The refusal to " disclose the specific details of the risk identified '' removes any ability to contest the characterization. XXXX MEDICAL DISCLOSURES ABSORBED WITHOUT ESCALATION During the XX/XX/XXXX chat session with XXXX, I disclosed my medical condition twice and offered to provide documentation. XXXX XXXX : I stated : " What is the address of your XXXX XXXX? I am a endstage XXXX XXXX patient currently at a Status XXXX and on a continuous IV life support medication. These funds are the difference between me eating or not today. '' XXXX 's XXXX : " I understand this is a critical situation, and I want to help you with your account. However, I can not provide the address of our XXXX XXXX. '' She did not escalate, did not flag it for supervisory review, and did not offer any accommodation. XXXX XXXX : I stated : " When will I have access to my balance? I am terminal. '' I offered : " If you would like a photo of the iv pump as proof, I am happy to provide it. '' XXXX 's XXXX : " I'm looking into your issue and will update you shortly. Please stay connected. '' A terminally ill person on IV life support disclosed twice, offered photographic documentation, and received a hold-pattern response identical to what would be delivered for a routine login issue. I had to rephrase my request from " General Counsel '' to " mailing address for legal correspondence '' before XXXX would provide : PayPal, Attn : Legal Dept./Civil, XXXX North XXXX XXXX XXXX XXXX XXXX XXXX CA XXXX. This information is required to be provided upon request under Wisconsin law. Its initial refusal created an additional barrier to the exercise of my rights during an interaction in which the agent had full knowledge of my medical condition. H. MY MEDICAL CONDITION I am an end-stage XXXX XXXX patient, currently classified at Status XXXX on the transplant waiting list at XXXX XXXX XXXX XXXX, Wisconsin. I receive continuous intravenous life support medication. I recorded a video during this experience documenting my medical condition and the circumstances under which PayPal 's restriction was imposed. This video is available upon request. REQUESTED RELIEF 1. Immediate release of all funds held in my PayPal account, including the {$64.00} XXXX deposit and any other balance. XXXX. Written confirmation that no adverse information has been or will be reported to any consumer reporting agency, banking database, or partner institution. XXXX. Written explanation identifying the specific policy, term of service, or legal basis for the restriction, which PayPal has refused to provide. 4. Deletion or return of all information collected during Steps 5 and 6 of the 8-step process, including my written narratives about XXXX and my private email correspondence, compelled under duress of a fund hold. 5. Review of PayPal 's practice of restricting accounts for transactions promoted by its own help documentation ( XXXX ). 6. Review of PayPal 's agent protocols regarding medical disclosures and whether a terminally ill consumer disclosing an immediate food-access emergency warrants escalation rather than scripted responses. SUPPORTING DOCUMENTATION 1. Chat transcript, XX/XX/year> ( XXXX XXXX, " fully usable '' representation ) XXXX. Chat transcript, XX/XX/year> ( XXXX XXXX, dual-framing restriction, medical disclosures, General Counsel refusal ) XXXX. Timestamped screenshots of XX/XX/XXXX chat session XXXX. XXXX transaction confirmation ( {$64.00} ) XXXX. XXXX account security process records ( On Request ) XXXX. Video recording of medical condition during restriction event ( On Request ) XXXX. PayPal XXXX XXXX XXXX ( archived ) XXXX. PayPal XXXX record ( NMLS ID XXXX, Wisconsin License # XXXX ) ( On request )

Company response to consumer: Closed with explanation