PayPal Complaints (How to Make One, Common Types of Complaints + Contact Information)

PayPal is a convenient online payment system that makes it easy for millions of people and businesses to send and receive money worldwide.

If you use PayPal, you may run into difficulties occasionally. Therefore, keep reading and learn how to file a complaint to PayPal!

How Does PayPal Handle Complaints From Its Customers In [currentyear]?

PayPal receives and handles complaints, both against itself and between users in [currentyear]. There are various ways of contacting PayPal, depending on where you live and what PayPal service you use. The company endeavors to resolve complaints quickly and satisfactorily. However, dissatisfied customers have several alternatives to air grievances. Reviews indicate contentment with PayPal’s customer support.

Keep reading if you want to discover the common complaints PayPal receives, how it handles them, and how to contact the online money service!

How Do I Make My Complaint to PayPal?

You can contact PayPal to complain about the company, or launch a dispute about a transaction that did not go well.

To report an issue to PayPal, use any of the following methods:

  • Call 1(888) 221-1161 (US and Toll-free). If you wish to speak to a specialist, you must log in to your PayPal account before dialing the number.
  • Send a message through your PayPal account by logging in, going to the message center, and selecting a “new message.”

Note that some PayPal messages will not come through your message center.

  • Go to the Contact Us page on by clicking on the Contact Us icon at the bottom of the site.
  • Send an email to
  • Facebook
  • Twitter

Other channels you can contact PayPal include the following:

How Do I Complain to PayPal About a Seller?

PayPal only deals with disputes, claims, chargeback, and bank reversal requests when they are made through the buyer’s PayPal account.

You can initiate a dispute by logging in first to your PayPal account. Next, click on “Report a Problem” in the “Resolution Center.”

Further, click on “Dispute a Transaction,” select the transaction, and click “Continue.” Next, select the item to dispute.

All disputes must be initiated within 180 days of the transaction, and resolved within 20 days of being begun. If not, then they can be escalated.

Log in to your PayPal account to escalate the dispute, click on “Existing Dispute” in the Resolution Center, and select “File a Claim.”

Where Else Can I Complain About PayPal?

There are many other options for customers who are dissatisfied with how PayPal has handled their complaints.

PayPal itself provides an avenue for accessing such alternatives via its systems.

Here are the alternative ways you can make a complaint against PayPal:

1. Arbitration

The PayPal user agreement requires that you accept submitting your dispute to arbitration with the American Arbitration Association.

If you wish to escalate your dispute with PayPal, start by contacting its legal department. When that fails, you can submit a demand for arbitration through

2. Consumer Protection Agencies

PayPal’s activities in the UK fall under the regulation of the Financial Services Authority.

Therefore, aggrieved customers can expect assistance from the Financial Ombudsman Services in their disputes with PayPal.

US consumers can contact the Consumer Financial Protection Bureau (CFPB) to report PayPal’s questionable business practices.

When complaints against PayPal are made to any of these agencies, the company launches an investigation and responds accordingly.

3. Review Sites

Complaints on review sites sometimes attract so much attention that PayPal is forced to act, especially if it’s a reputable review site.

Besides, some sites also offer to present and pursue complaints made about PayPal on the reviewer’s behalf.

4. The Law

Further, PayPal customers have access to legal channels to resolve their complaints, though the PayPal user agreement attempts to limit this option.

However, by complying with requirements in the agreement and the law, customers can still file cases, particularly in the small claims courts.

How Does PayPal Resolve Your Complaints?

How Does PayPal Resolve Your Complaints?

PayPal deals with complaints using this procedure:

  1. Once a user files a dispute, PayPal notifies the seller, and places the funds involved on temporary hold.
  2. The seller must review the dispute and post his response, including what measures he is taking to resolve the issue. During this time, speed is of the essence.
  3. For claims of unauthorized purchases, the seller must review and respond within seven days.
  4. If the seller hasn’t shipped the item, they should refund the money. They should supply documentation that proves shipment and receipt if they have shipped it.
  5. The entire process must be completed within 20 days.
  6. If not, then either the buyer or seller can escalate the dispute to a claim. This means that PayPal now takes charge of the process.
  7. PayPal investigates the claim, and either orders a refund or releases the funds to the seller.
  8. Disputes that involve chargebacks and bank reversals are presided over by the bank, with assistance from PayPal.

What Are Common Complaints Made Against PayPal?

Common complaints made against PayPal include the following:

  • Held Funds:

PayPal holds a user’s funds temporarily if a dispute is lodged against the company, or if PayPal deems the use of their account suspicious.

Most users complain that this system denies them using their funds, sometimes for flimsy reasons, and that PayPal benefits from it.

  • Account Suspensions and Limitations:

When PayPal deems the use of an account suspicious, or when there have been several complaints against the user.

Users complain that sometimes the grounds for suspension are as flimsy as receiving higher than normal amounts in your account.

To reverse the suspension or limitation, PayPal requires that users verify their account, a normal hit-and-miss process.

  • Difficult Verification Processes:

PayPal requires a user under investigation to verify their identity, or prove they upheld their end of the contract.

Many users have complained that the verification process does not guarantee results, and despite providing all the required documentation, your account can still remain limited.

  • Unresponsive Customer Support:

PayPal’s customer support has been accused of being indifferent to the plight of its users- buyers and sellers alike. Many reviews claim that it’s hard getting through to customer support.

One user claimed that PayPal blocked them on Facebook when they tried to follow up on their complaint one too many times.

This lack of empathetic support often results in loss of money, time, and business to a small businesses’ detriment.

How Effective Is PayPal’s Customer Support for Complaints?

PayPal’s customer support ratings differ vastly across various review sites.

On Consumer Affairs, it had a rating of 3.8 stars, based on 3,185 ratings. On Capterra, PayPal had 4.3 stars, based on 21,484 reviews.

On the other hand, Trust Pilot gave PayPal 1.2 stars, based on 20,921 reviews, while Reseller Ratings awarded it 1 star.

Site Jabber struck a middle tone, awarding PayPal 2.5 stars, based on 2,240 reviews, and 1.5 stars for customer support, based on 261 reviews.

To know more, you can also read our posts on how does PayPal make money, how long do PayPal refunds take, and PayPal friends & family refund.


Many of PayPal’s customers hold diverse and strong views about the company, especially how it assists its customers opening and maintaining their accounts.

However, PayPal has provided an internal complaint resolution mechanism for its disgruntled customers, who also have access to alternative mechanisms.

Photo of author

Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of

Leave a Comment