Top 3 Paypal Horror Stories

PayPal is one of the world’s leading payment processors in the world. Throughout the years, the company has gained global recognition for their payment services and even became the official payment method for platforms such as eBay. At the same time, there are quite a few complaints related to PayPal, and we have collected a brief list of third-party accounts on how using PayPal can end up in disaster. Keep in mind all of these stories need to be taken with a grain of salt though.

#3 Accounts Raising Suspicion

A lot of people who have ever dealt with PayPal are well aware of how the company conducts thorough security checks. In some cases, they will randomly pick accounts and ask the owners for additional verification. For budding entrepreneurs, PayPal may not be the best option, as the company has a bit of a history for [wrongfully] limiting user accounts. Although account limitation is justified in a lot of cases, things can go awry rather quickly as well.

Case in point is one of the many stories found on the PayPalWarning website. The person claims PayPal limited his account as a result of a returned item. PayPal allegedly limited his account for a minimal amount of item returns over time, despite a long-standing history of successful sales. In this case, Paypal failed to go into details regarding what was going on and never completely resolved the issue. Moreover, they held a lot of money hostage, and the matter has not been settled since.

#2 Double Charging Fees

PayPal is a company that seems to charge fees for just about everything. Given the vast amount of staffers and workload they deal with, it is not surprising to see sellers pay a fee for every transaction. Unfortunately, it may occur one seller gets hit with this charge multiple times, even though only one sale is made.




One seller reported on how  the payment processor charged the seller fee twice. One time through his credit card, and the second time when he received a check from PayPal for the sale he made. PayPal used to send out checks to sellers as of 2015 depending on which region one lives in, however, the company deducted an amount of money equal to the seller fee from the check balance, resulting in a double charge. It later turned out to be a correct deduction, as eBay and PayPal have different transaction fees. A bit more clarity on behalf of PayPal during these situations would go a long way, though.

#1 PayPal Lost My Money

One of the worst things that can happen to anyone is losing money. Whether it is due to an error, a glitch, or a scam, the experience is never pleasant. In this incident, PayPal lost a user’s funds, and never managed to recover it. Allegedly, the company admitted failing to come up with the finances, yet never resolved the matter properly.

Even though the money was successfully deducted from the PayPal account in question, there was no associated transaction ID. Moreover, the seller never received the money either, and it appears the funds have disappeared into thin air. A second purchase made for the same item worked flawlessly, resulting in the buyer being charged twice the amount for one purchase. PayPal agreed to dispute the first payment as best they could, although it remains unclear if the money was ever returned to the rightful owner.

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  • Had a family member lose close to half their life savings from a paypal screw up. It’s complicated and was a big identity theft / fraud case. I will say though, it took close to two months of constant calls and working between them and the family members bank, but it did eventually get resolved. Couldn’t believe that large transactions like that didn’t draw a red flag from either the bank or PayPal. Cryptocurrency really is the perfect solution for internet money,

  • Had my account limited because a buyer filed a fraud dispute for items that were delivered and proof was submitted. Yet, PayPal decided in the buyers favor and I was out of my money, item and my Paypal was limited shortly after. Ridiculous. My Tried so many times to call PayPal to get it lifted, but yet they didn’t bother with me. Now I can’t even accept payments anymore.

    I had to hire Auction Essistance to help me create a new account just to be able to sell again.