Unfair PayPal Dispute Refusal for $1900 Airline Ticket Refund After Airline-Canceled Flight

[BinelAzzat]

Hello everyone, I'm reaching out for some advice as I've been struggling to resolve a dispute with PayPal. I've raised multiple claims, disputes, and appeals regarding a transaction I made, but each time my claim is refused, which I find quite unfair. Here's the situation: I paid $1900 AUD to an airline company, and they canceled the flight from their side (not mine). The airline has admitted the cancellation was on their end and promised a refund. However, they only offered to refund through either a website credit (which I don't want since I don't plan to use their services again) or a bank transfer, which isn’t feasible for me right now. I've explained this to PayPal multiple times, highlighting that the airline is refusing to issue the refund to my original payment method (PayPal), yet my claims keep getting denied without a clear explanation. I have all the documentation to back up my story, including conversations with the airline confirming the cancellation and their commitment to refund me. After four attempts to resolve this with PayPal and no progress, I’m feeling really stuck. I've also tried calling PayPal's support to speak with someone who might be able to make decisions on cases like this, but they haven’t been able to assist. I'm really worried because, based on the facts, it seems fair that I should receive my refund, especially since the airline has admitted fault and promised to refund me. Does anyone have advice on what else I can do to escalate this further? Thanks in advance for any help!

[kernowlass]

@BinelAzzat 

Have you tried a dispute for non receipt of item/service?

[BinelAzzat]

Yes I've tried that, and PayPal told me that I've received the item/service already!

[samsnow850]

Hello @BinelAzzat ,

I understand how frustrating this situation must be, especially when you have all the documentation and the airline has acknowledged their responsibility. Here’s a possible approach to escalate the issue with PayPal:

1. Dispute for Non-Receipt of Service: Since PayPal has told you that you've "received the item/service," you might want to explore a formal complaint for Non-Receipt of a Refund. This could be framed as a service issue where the refund is part of the service not being completed as promised by the airline. Make sure to clearly explain that the airline has acknowledged fault, canceled the flight, and agreed to a refund, but has failed to issue it to your original payment method.

2. Escalating the Case: If you haven’t already, request that PayPal escalate the case to a supervisor or a senior representative. Mention that the airline's refusal to refund via PayPal is a direct breach of consumer rights, and you believe this is an unfair denial under PayPal's protection policies. Provide any additional documentation or a formal letter from the airline if available.

3. Consumer Protection Agencies: If PayPal continues to deny your claim, you can consider filing a complaint with consumer protection agencies such as the Australian Competition and Consumer Commission (ACCC) or your local financial ombudsman for unfair business practices. Sometimes these organizations can assist with resolving cases where companies or payment platforms aren't upholding their obligations.

4. Documentation: Keep all records of your communication with the airline and PayPal, and be prepared to submit everything again if needed for escalation. Providing clear timelines and showing that you've followed through on the refund process might help in getting the case re-evaluated.

In the meantime, try contacting PayPal once more and reiterate that the cancellation was on the airline's part, the refund has not been issued as promised, and PayPal should support you in receiving it.

Best of luck,
Samuel