PayPal Holdings, Inc. Money Transfers Complaint

PayPal Holdings, Inc. Money transfers department,

Domestic (US) money transfer Other transaction issues Illinois

I set up a Paypal transfer of funds for $5000.00 to another individual. Paypal immediately reversed the transfer because they thought it was fraudulent. The initial transfer was on - - and there has been a pending refund on my account from the same day when the transfer was reversed. Despite them canceling the payment and reversing it, the money still was removed from my checking on -/-/-. No refund has been deposited as of - -. I was told by Paypal to contact my bank if the deposit did n't show up on -/-/- but my bank said they are not holding up any deposits from Paypal. When I called Paypal again I had to speak to - different departments of Paypal, waiting on hold for over an hour to get them to tell me why they wo n't give me back my $5000.00 that should never have been withdrawn in the first place if they flagged it as fraud. Their explanation is that they must first receive the money to refund it, but it has been 2 days since my bank has debited my account. Their procedures put the consumer at risk for overdrafts and late payments because they do n't give any information about 3-5 day delays in the actual transfer of funds. They advertise instant money transfers all over the place and it seems they accomplish this by fronting the money while it may takes days to clear on the back end. Why ca n't they front the money for a refund when they are the initiators of a fraud check and the consumer is able to verify the transaction within minutes of them reversing it. They should just put the transaction on hold instead of reversing it. Or they need to be more transparent about what is happening to the money in these cases so the consumer can protect themselves from overdrafts.