Paypal Credit won't allocate payment to correct transaction

[madjack75]

I have tried contacting customer service vie phone, e-mail and chat for the past several weeks and even when I think that the customer service rep understands my issue, it doesn't get fixed.  I need some help!

My problem has a long, complicated history but it really boils down to the simple fact that payment "A" should be allocated to transaction "B" and nobody seems to be able to make this happen!

1. In March, I made a purchase from a retailer I have done business with multiple times through Paypal.  Unfortunately this time instead of an invoice, they sent a money request.  I paid with PayPal Credit anyhow since I had a long history with the merchant.  Since it was over $99 I was supposed to get 6 months same as cash financing but customer service said that it didn't qualify for the promotion because it was a money request not an invoice.
2. I eventually contacted the merchant and got them to refund the original payment and send me an invoice for the same amount.  Even though they refunded the payment, since it was a money request, the original transaction did not go away.  I just recieved another money transfer to my acount.
3. I paid the new invoice through Paypal Credit to get the financing and I submitted a payment to Paypal credit with the refunded money.  Being the oldest active transaction on my account, the payment should have been allocated to the original transaction.
4. Wanting to make sure it was allocated properly, I e-mailed customer service but got a canned response.  My reply to the canned response went unanswered.  My first call to customer service was trasferred to a different department who then told me that they couldnt help me and I needed to contact the first departement again.
5. My next e-mail also got a canned response but the follow up e-mail was answered and I was told that my allocation request had been approved.  However, instead of allocating the payment to the original transaction, they allocated part of the payment to the NEW transaction and I think charged me interest on the original transaction.
6. I called customer service again and explained the whole painful story and asked that the whole payment be allocated to the original transaction and the new transaction be reinstated with the 6 month promotional offer .  The rep said she understood exactly what I wanted and said it was going to be fixed in a few days.  I got an e-mail shortly after, again saying my allocation request was approved and I should see the correction in a few days.  It is now a week later and nothing has changed.  The old transaction is accruing interest and the new transaction is mostly paid off.
7. I tried chatting with customer service today but they are only Paypal customer service and can't help with Paypal Credit issues.  Can anyone please help!  It has been over 2 months since the origninal transaction and I don't want to keep accruing interest.

[sharpiemarker]

@madjack75 

#2: <> not at you, but at the seller not issuing refund from the original transaction. they could have gotten some of the fees back as PayPal refunds the variable rate portion of the fee.

Anyway, perhaps this will help to see how PayPal apply payments and you can adjust your payments accordingly:

How will my PayPal Credit payments be applied?

You'll have to call and call and be on top of 'em. Some have called 15 times or more. 

Or try private message via social media:

Facebook: https://www.facebook.com/paypal

Twitter: @AskPayPal 

There's also a way to contact PayPal Credit at the bottom of this page:

https://www.paypal.com/us/webapps/mpp/paypal-credit/faq