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Turned over to a collection agency, even though I've never used Paypal
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In the mail today, I received a debt collection notice from a company in MN stating I owe $557.00 to PayPal. For starters, I have never used Paypal in my entire life. I have never used their services at any time. I have 2 credit cards I use for online transactions and purchases. What really takes the cake is that I was never once sent a notice from Paypal stating any money was owed in my name. Someone must have stolen my identity.

Paypal should have at least sent a notice to my home address first before turning my name over to a collection agency. I have sent both Paypal and the collection agency certified letters demanding an explanation for this fiasco. It costs me $11.50 to send both letters. Way to go Paypal. I'm now in the position of defending myself costing me money.

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PayPal... a merchants' broker
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SAN JOSE, CALIFORNIA -- Without my authorization Wealthy Affiliates University (WA) used my PayPal account for a second year of a non-recurring subscription for $359.88 (subject of another complaint). WA notified me of this after they had been paid by PayPal. I filed an email dispute with PayPal, which was denied. I called them and was told that since they had paid WA, they would not do anything to help me. PayPal is broker for their merchants' financial interests, with no protection for the consumer.

While I was on telephone hold, I heard all sorts of dialogue about how much protection PayPal was to the customers. PayPal actually provides no protection against unauthorized use of one's credit. In my opinion, it is just as safe, perhaps safer, to use your credit card online. I have filed a complaint with the Better Business Bureau and my credit card.

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Payment Processing
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SAN JOSE, CALIFORNIA -- I purchased an item from Ebay using PayPal. PayPal took payment out of my credit card but did not send it to the seller (or so the seller says). PayPal said to me (I called them) that they did send it to seller. PayPal has my money and I don't have my merchandise.. a planned Christmas present. PayPal won't help me.

Ebay (I called them) won't help me, unless I pay twice!! Their online resolution email system doesn't work. To top it all off, Ebay has officially listed me as a “refused to pay” buyer, not that I will ever buy on Ebay again. The seller (email communications) won't call (I gave him the numbers) PayPal, which would, I think, clear it up. Any other ideas, folks?

Resolution Update 01/19/2010:

I finallly got a refund... not in time for Christmas, but appreciated.

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Beware of PayPal & Ebay Practices
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SAN JOSE, CALIFORNIA -- Beware of PayPal & Ebay Practices: You buy an Item on Ebay. You Pay with PayPal. Both are Owned by Ebay! Ebay says you must pay within 7 days! You are verified with both Ebay & PayPal. You have a verified checking account and Credit Card on PayPal. PayPal notifies the seller you have paid with Echeck. PayPal sends you a Email notifying you that the payment will take days and days and days to process.

Even though YOUR BANK has paid PayPal within just a few days, PayPal holds your payment for even more days, making sure your payment to the seller goes just over the 7 days allowed! This way PayPal makes all the interest they can on YOUR MONEY! You are delayed getting your item, you may get negative feedback, but Ebay and PayPal make their money! Also beware of the 5 free listing thing Ebay has on now. They will RIP you on fees. At least 8.75% or $20.00! PayPal acts like a BANK but are not allowed to be a BANK!

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Lies And Convoluted Policies
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I tried to update my PayPal account since we moved to Washington, and when it got to verifying bank account, I ran into a brick wall. My wife, Crystal, had updated her PayPal account already, and I sat down at the PC, fat, dumb and happy, to do the same. Everything was fine until I got to verifying a bank account. I filled in all the proper information, and I was informed by the impersonal website that the bank account was already linked to a PayPal account, and I would have to use another account.

The directions to add a secondary user to a PayPal account apparently are all lies, because the live person I called said it couldn't be done. I told her we had a joint account, and I was not going to open another bank account just for PayPal. The gal said she was sorry, but it sounded a lot like, "Tough fecal matter." I canceled my PayPal account and when they sent me an email saying if I ever wished to sign up again, I would be welcome, and I sent a message back that said, "Bite me!"

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No support/won't cancel
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BONHAM, TEXAS -- I tried to solve not being able to use my PayPal account over the phone at the 800 number listed. The woman I spoke to understood very little English and was completely unable to resolve the problem. She pretended to understand what I was saying by saying "yes", "ah ha", but then would ask me for information I had already given her. I have no idea what country she was in or was from. I spent 30 minutes cell phone time trying to resolve the problem, finally gave up.

After I gave up, I sent the July bill paid in full ($29.99) with a letter enclosed asking them to close my account. They ignored the request and sent me another bill with a $15 late fee on a zero balance. Trying just to be done with them I sent them the $15 late fee. Not good enough, they sent me another bill of a $15 late fee on the late fee. I'm not sending these crazies any more money, but they keep sending me more bills with late fees on top of late fees. Haven't charged anything with them since June and haven't had a balance since July, but they keep sending those late fee bills. I filed a complaint with the Texas Attorney General so we will see.

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Great Service in Correcting Problem
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CASA GRANDE, ARIZONA -- I recently made a couple of purchases from eBay, and used PayPal to pay for the items. They paid for the items for me, then apparently since I had not used my PayPal account for sometime, set up a new one. When I tried to confirm my bank account, I received a message that my bank account was connected to another PayPal account, and I could not use that bank account.

I called the 800 number, and was a bit put out at first, due to a twenty minute wait, listening to PayPal advertising. CSR Brian came on and apologized for the wait and asked how he could be of help. I explained my problem and he quickly and professionally brought up both accounts on his computer and verified that I was indeed the holder of both. Seems I had a small amount of money in the old account. Brian consulted with his supervisor, George, and in short order he had transferred the money to my bank account, and closed out the old PayPal account.

My problem was resolved in a short amount of time, and Brian showed concern and was a delight to deal with. The wait was not problem, once I saw that my problem was dealt with completely with one call. I knew that my problem was the total issue for that time. Good job, Brian and George.

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My son's experience
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My son won eBay auction for an electric violin. For some reason, PayPal chose to put a hold on the transaction and investigate. They were investigating my son, not the seller. They said the transaction was unusual for him and raised a flag. It, however, was the second electric violin that he purchased from eBay through PayPal. The most unusual part is that they took my son's money!!! PayPal has his cash, right out of his account, and isn't paying the seller. My son has phoned PayPal and talked to them twice. They still have his money, almost a week later, and are not paying the seller.

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Terrible Customer Service
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Requested a PayPal debit card which they offer free of charge. Received card. Went to activate it online but got an error message. Called customer service. After going through long wait times and trying to translate Indian speakers, they said they would send another debit card. Next card arrived and still didn't work! Same problem. Sent from batch of "bad cards". Again spoke to customer service. Assured me they were sorry, etc. and would not happen again. Well they sent another and it happened for a THIRD TIME! The card they sent was, once again, from the bad batch.

Rep I spoke to said "company has no control over this problem" and blamed it on MasterCard, with whom the company was "under contract" to produce cards. (Wouldn't sending bad cards be breach of contract?) Card #4 is supposedly in the mail but this company is absolutely incompetent. They treat their customers like garbage.

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Hopeless Customer Service
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CANADA -- I live in Canada and received some U.S. funds in my PayPal account, which I naturally wanted to convert into Canadian dollars before depositing them in my bank. I didn't know whether to enter the U.S. amount or the converted Canadian amount in the "Amount" (amount to deposit) box, so I called customer service - not a toll-free number, by the way. The first person had no idea and went off for quite a while to check. When he returned he still didn't seem quite sure, so he left again. After waiting nearly another 10 minutes, I hung up and called again in the hope of reaching someone who would actually know the answer to this very basic question.

The second person somehow accidentally disconnected our call after about three seconds. The third person was so clueless that I gave up (among other things, she seemed a bit puzzled about why someone would want to convert money into Canadian dollars). The fourth person did virtually the same thing the first person had done, and disappeared for ages in search of the answer, then came back and suddenly left again with no explanation whatsoever.

While I was waiting I decided to try entering the U.S. amount and see if it would convert automatically. It did. I didn't wait for the woman to come back (I wasn't sure she was even going to come back). Incidentally, all of these people had varying degrees of difficulty with English, so it's possible they weren't even completely sure what I was talking about. I'll never know - I hope never to have to contact PayPal again.

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PayPal Rating:
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1.8 out of 5, based on 9 ratings and
42 reviews & complaints.
Contact Information:
PayPal
2211 N. First St
San Jose, CA 95131
402-935-2050 (ph)
650-864-8001 (fax)
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