PayPal Money Transfers Complaint

PayPal Money transfers department,

Domestic (US) money transfer Other transaction issues Pennsylvania

I recently opened an account with PayPal. I purchased - PayPal MyCash '' cards ( PPMC ) for $500.00 each and loaded them to my account in anticipation of making a few purchases on Ebay, the parent company PayPal. PPMCs are sold at various retail establishments, and in my case, I not only was required to show identification when I purchased them, but I also kept all receipts related to such purchase. Via a website that is, upon belief, authorized and/or maintained by PayPal, I loaded the PPMCs to my PayPal account. Because of limitations imposed by PayPal of $500.00 of loads per day - and $4000.00 per month ), the - PPMCs I purchases were loaded to my PayPal account over two consecutive days. Approximately one day after the second PPMC load ( which was within the guidelines and rules established by PayPal ), I received an email from PayPal that my account was limited due to what was described


high risk '' activity and that PayPal would be freezing my $ 1K in deposited funds for 180 days in order to make sure there were sufficient funds to cover any payment reversals. I telephoned PayPal and spoke to a representative in its Account Limitations Department, '' and was told essentially the same thing that was related in the email. Although I explained, and the representative conceded, that there were no payments made ( and thus there could not be a basis for any payment reversal ), I was told PayPal would not change its position. I also offered to provide copies of my PPMC receipts and other supporting documentation to establish that my purchase of the - subject PPMCs was bona fide, but this offer was rejected. PayPal 's actions are unjust, unfair and punitive in nature. While I recognize the need to have certain loss prevention policies in place, I believe there is something fundamentally wrong with a system that cites this as a justification for detaining a customer 's money but does not provide a route for appeal or other process that would enable a customer such as myself to refute the implication raised through clear and convincing documentation.