I received $500 using Paypal service from a customer for services (not a product). Paypal held my money for 21 days.

The customer called their bank and stated that it was an unauthorized payment. She did not use Paypal's resolution center.

I no longer have the money in the Paypal account so my balance has gone negative to -$478.

What actions (legal or financial) can Paypal take against me if I don't pay them?

I have an Indian Paypal account in which there is no option to add to your Paypal balance from a bank account. I do still have a 500$ as a pending balance in my Paypal account.

  • So you are from India?
    – NuWin
    Oct 2, 2015 at 4:44
  • Possible duplicate of Paypal Chargeback
    – bdimag
    Oct 2, 2015 at 13:58
  • Have you contacted Paypal? You delivered a service, the client is now perpetrating a fraud by their actions. Oct 2, 2015 at 15:27
  • If you ever plan to use a paypal account again, you should resolve this now while you still can.
    – stannius
    Oct 2, 2015 at 17:41
  • what are the different ways I can pay paypal back cause according to RBI (indian bank) there is no way we can have money in our paypal account. if I don't do any online sale I don't think I have any other option to pay them back.....the only way they can make that negative balance positive is when I do any sale so they can deduct the amount. Do you have any suggestion on this matter
    – James
    Oct 3, 2015 at 6:33

1 Answer 1


Paypal can take exactly the same legal actions against you as any creditor could -- take you to court for wilful nonpayment of debt, sell your debt to a collections agency, or anything else a business would do with a deadbeat customer.

But this is a legal question, and as such off topic here.

  • I asked to paypal about the reason they said
    – James
    Oct 3, 2015 at 6:28
  • I believe you are referring to the bank claim we received in the amount of $500.00. If that is the case, her bank made the decision as to the outcome, not PayPal. I'm sorry you ran into this situation, but any questions as to why the claim was filed should be directed to your buyer.
    – James
    Oct 3, 2015 at 6:28

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.