Report: #1511437

Complaint Review: PayPal, Inc. - San Jose CA

  • Submitted:
  • Updated:
  • Reported By: kfamceo — Los Angeles CA United States
  • Author Confirmed What's this?
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  • PayPal, Inc. 2211 N 1st St San Jose, CA United States

PayPal, Inc. PayPal Holdings, Inc. PayPal USA Inc. PayPal froze my company's funds and limited withdrawing and receiving money San Jose CA

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PayPal Holdings Inc.

I had been a customer of PayPal Inc for a couple years as a business account. I had several issues about PayPal's account limitations and account freezing but I was able to solve those issues by identifying myself.

I owned a shop called K-FAM Records for Korean albums overseas. On April 17, 2020, I received a call from PayPal asking me too much information about my business such as:


  1. How much sales do you get per year?
  2. Who are your suppliers?
  3. How long you been in business

My suppliers don't need to be exposed because it can be used against them. They didn't like my answers and told me they will limit my account until I provide the following items


  1. Proof of Fullfilment (Which I gave)
  2. Supplier's information (That's none of their business)
  3. Business information (I gave them what is public use)


PayPal Inc limited my account, took $564.74 to place on reserve because they said this:

"PayPal is holding a reserve of $561.74 of your existing funds. This is to ensure your PayPal balance is large enough to cover any disputes or refunds you need to address. Your money will be released based on your account performance." It's August 29, 2021 and there has been no chargebacks, no refund reports, and thanks to them, I had to shut down my eBay account because they prevented me from refunding the money they took as a reserve.

I reported them to the BBB and they told me I have a balance of $509.06 that is due on a linked account I have no idea about. They refuse to release my funds until I send them a check. I shouldn't have to use my own money to pay them when they are reserving $564.74 already on my actual PayPal account. PayPal is not a bank. They shouldn't have a right to hold funds.

After several months in August, Ticketmaster announced a tour was cancelled and they said I will receive a refund in my original payment, which was the PayPal Debit Mastercard, but PayPal closed it. I want to withdraw the money I earned on my own before they take it from me. PayPal's representatives are horrific. They reply the same messages on Twitter and Facebook. I cannot express how terrible they are and how they are hurting small businesses and customers alike.

This was from the Office of Escalations:
My name is Chaitanya, and I am reaching out to you from PayPal's Office of Executive Escalations. Your outreach to the Better Business Bureau was forwarded to me so that I can fully address your concerns. I understand how concerning this issue could have been. I regret for any inconvenience that this issue may have caused you, please allow me to offer further explanation concerning your issue. I regret to hear that you did not had a satisfactory interaction with our customer service team, I assure you that PayPal strives provide best in class service in all the interactions.

Please note that, any internal opportunities identified are conveyed to the concerned department to improve our service and I thank you for your valuable feedback. A review of your PayPal account shows that on April 17, 2020, PayPal placed limitation PP-L-223022187229 on your account and requested additional information from you concerning your PayPal account. This information was requested after a standard review indicated that your selling activity required clarification.

PayPal reserves the right to request additional information from its customers, should it be deemed necessary, in order to minimize any possible risk and reduce the likelihood of buyer complaints, chargebacks or other forms of reversal. Per the Restricted Activities and Holds section of our User Agreement, when we implement a hold, reserve or limitation as a result of a court order, applicable law, regulatory requirement or other legal process, the hold, reserve or limitation may remain in place longer than 180 days."

Based on the review of your account and the information received, we show that you are linked to one or more PayPal accounts that currently have unresolved issues. Please resolve negative balance with the following linked account of yours:

This from the Merchant Review Department:

Thank you for contacting PayPal regarding the reserves added to your account. We have completed our review of your request to adjust your account's reserve settings. Unfortunately, we are not able to approve your request at this time. You may contact PayPal  days from today's date and we will conduct a new review of your reserve settings.
The decision regarding your reserve setting was based on our review of the level of risk associated with your account. We looked at several factors in determining that there is a high level of risk associated with your account including:

  • Claims and/or disputes - Excessive level or significant change - (A high amount of claims or number of disputes filed against you; A significant increase in the number of claims or disputes filed against you). 

          · Refunds - Excessive level or significant change - (A high amount of refunds transacted; A significant increase in the number of refunds transacted).
  • Overall processing volume – (There is a significant change in the level of payments your business is processing compared to your processing history).
  • Linked Account  – (PayPal account was linked to another PayPal account held by you on which there are outstanding issues with regard to claims, chargebacks or negative balances).

We regularly review reserve levels and make adjustments when possible. You may contact PayPal on  and we will conduct a new review of your reserve settings. You will be notified if your reserve settings are adjusted (increased or decreased) in the future.

You can find additional information and tips about buying and selling safely on our Business Resource Center at https://www.paypal-businesscenter.com/manage-your-business.
If you have any questions, please visit our Help Center by clicking "Help" at the bottom of any PayPal page.
Ashwini P
Merchant Review Department


If you don't want to deal with the headaches I went through, never do business with PayPal.

This report was posted on Ripoff Report on 08/29/2021 04:48 PM and is a permanent record located here: https://www.ripoffreport.com/report/paypal/san-jose-ca-holdings-usa-1511437. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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