What is the point of PayPal?

Flyboy152

This is a hypothetical question. Following on from a discussion in another thread, it occured to me to ask:

With the availability of section seventy-five of the consumer credit act, can anyone explain the point of PayPal for the average buyer?

Seeing as the main reason for the average buyer, buying from a business, using PayPal is the protection if their purchases do not arrive, arrive broken or that the seller breaks the contract etc. Why do people use the service, seeing as their terms and conditions give fewer rights than the consumer credit act?

MisterBrico

I always thought it was so you didnt have to hand your card details out to less reputable companies?

PasturesNew

I work online and I get paid from all kinds of random individuals simply by entering my Paypal address in my profile.

I probably receive about 10 random payments every month, varying from $1 to £50... so it's handy for multiple currencies too as I get paid in at least five currencies at the moment (US$, UK£, AUS$, NZ$, Euros)... and I also spend in three currencies. It's easy, just click and it's done.

What's not to like about Paypal?

I don't have any credit cards.

I've probably also usually got £1000 or so kicking about in there in various currencies...

Flyboy152

PasturesNew wrote: »

I work online and I get paid from all kinds of random individuals simply by entering my Paypal address in my profile.

I probably receive about 10 random payments every month, varying from $1 to £50... so it's handy for multiple currencies too as I get paid in at least five currencies at the moment (US$, UK£, AUS$, NZ$, Euros)... and I also spend in three currencies. It's easy, just click and it's done.

What's not to like about Paypal?

I don't have any credit cards.

I've probably also usually got £1000 or so kicking about in there in various currencies...

As I understand it, if you pay with your credit card using PayPal, you don't get the section seventy-five rights you would, if you paid direct by credit card. So, for example, if you don't raise a dispute with PayPal within the first forty-five days, you lose your rights to get them to refund the money.

Beki88

Flyboy152 wrote: »

This is a hypothetical question. Following on from a discussion in another thread, it occured to me to ask:

With the availability of section seventy-five of the consumer credit act, can anyone explain the point of PayPal for the average buyer?

Seeing as the main reason for the average buyer, buying from a business, using PayPal is the protection if their purchases do not arrive, arrive broken or that the seller breaks the contract etc. Why do people use the service, seeing as their terms and conditions give fewer rights than the consumer credit act?

I thought section 75 only applied if purchase was over £100?
Meaning anything under isnt covered.

arcon5

Convenience
Ease of use
The fact they tend to side with the buyer in most cases

I've also read a few threads (can't remember if it was here or another forum) that some CC companies are starting to accept some claims involving paypal.

Flyboy152

Beki88 wrote: »

I thought section 75 only applied if purchase was over £100?
Meaning anything under isnt covered.

Good point. I presume PayPal doesn't have the same limits.

Nevertheless, for purchases over one hundred pounds, isn't consumer is potentially worse off?

Beki88

Flyboy152 wrote: »

Good point. I presume PayPal doesn't have the same limits.

Nevertheless, for purchases over one hundred pounds, isn't consumer is potentially worse off?

Paypal lets you do it for any amount but I have just read the link at the top of this page and it tells you, you can do a chargeback, which I didnt know.
Still not 100% sure how it all works though!

I actually dislike paypal mainly for the reasons they take money off you quickly but in cases of refunds etc it takes an age to get it back into the bank!

PasturesNew

Flyboy152 wrote: »

As I understand it, if you pay with your credit card using PayPal, you don't get the section seventy-five rights you would, if you paid direct by credit card. So, for example, if you don't raise a dispute with PayPal within the first forty-five days, you lose your rights to get them to refund the money.

I don't buy much really, spent $12.70 this month on a digital download and I can't remember the last thing ... but probably something for £5 or so.

But without Paypal, I can't easily get paid. Before Paypal, with its small charges, I used to receive US$ cheques that cost me £8 to pay into the bank and I had to wait about 6 weeks.

Oliver14

Flyboy152 wrote: »

This is a hypothetical question. Following on from a discussion in another thread, it occured to me to ask:

With the availability of section seventy-five of the consumer credit act, can anyone explain the point of PayPal for the average buyer?

Seeing as the main reason for the average buyer, buying from a business, using PayPal is the protection if their purchases do not arrive, arrive broken or that the seller breaks the contract etc. Why do people use the service, seeing as their terms and conditions give fewer rights than the consumer credit act?

I don't have a credit card (and dont want one) so section 75 is pointless to me. Section 75 doesn't apply to non UK transactions. Also its far easier and quicker to get a refund quicker via paypal than a section 75 one,

Quite a few banks now accept section 75 refunds via paypal (Nat west does). Also I cxant sell or buy in ebat without it so thats the point to me.

Flyboy152

Oliver14 wrote: »

I don't have a credit card (and dont want one) so section 75 is pointless to me. Section 75 doesn't apply to non UK transactions. Also its far easier and quicker to get a refund quicker via paypal than a section 75 one,

It certainly does.

Quite a few banks now accept section 75 refunds via paypal (Nat west does).

Interesting, does that mean if I buy something via PayPal and I need to make a claim outside of their forty-five days, I can claim from the card providers who operate such a service? Do we know which banks provide this facility (other than Nat West, of course)?

Also I cxant sell or buy in ebat without it so thats the point to me.

I thought that was a bit of a misnomer, can people not use other methods or are they contractually obliged to use PayPal?