Money transfer, virtual currency, or money service -- Unauthorized transactions or other transaction problem -- Complaint #7331386
Complaint Overview
Complaint ID: 7331386
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem
State: Texas
ZIP Code: 78724
Date Received: 2023-07-31T12:00:00-05:00
Date Sent to Company: 2023-07-31T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
Paypal has created backdoor access into customer funds. Paypal created secret " billing agreements '' that allowed a merchant to withdraw on my paypal funds without my authorization. They call it " automated payments. '' Anyday & anytime after a one & done transaction a merchant can submit an invoice of any amount to paypal to be paid with my funds. In XX/XX/XXXX, I went to a website and made a one-time purchase via Paypal for a year of streaming services. Then, I downloaded their official app and put down my debit card as my method of payment. Not Paypal. In XX/XX/XXXX I tried to end subscription before renewal date shown on my account. ( Renewal date on account was incorrect for unknown reasons ). The merchant submitted to Paypal a bill for a new year of service at a 37 % markup. Paypal deducted full amount from my wallet on XX/XX/XXXX. I called merchant for refund & cancellation. Merchant refused both. I submitted complaint to Paypal. In about15 minutes, Paypal claimed I had authorized payment & sided with merchant. I filed appeal with Paypal. I canceled unwanted merchant streaming service myself but it showed good thru XX/XX/XXXX. Paypal sent me link showing active billing agreement with merchant. It also showed 8 other such agreements with other merchants. Merchants like a one-time purchase of cleaning supplies, round trip train ticket, donation to a social cause, etc. One merchant even showed on the invoice that it was " one-time '' purchase but Paypal still created a backdoor agreement. At XXXX XXXX on XX/XX/XXXX, I called the merchant again & received a full refund and immediate cancelation of service. Paypal also reversed decision and sided with me. By XXXX on XX/XX/XXXX, my money was back in my Paypal wallet. I never made an agreement with those merchants for continued access to my Paypal wallet.
Frequently Asked Questions
What is Complaint #7331386 about?
Complaint #7331386 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Unauthorized transactions or other transaction problem. It was received by the CFPB on 2023-07-31T12:00:00-05:00.
How did Paypal Holdings, INC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Paypal Holdings, INC?
Yes, visit the Paypal Holdings, INC company profile at readthecomplaint.com/company/paypal-holdings-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.