What is the point of PayPal?

vikingaero

The point of PayPal is to make more profits for eBay.

gnaril

Seems to be clear confusion on this post.

Section 75 would cover any overseas transaction. This was ruled years back that Section 75 would cover these transactions also.

Section 75 will not cover any transaction that is paid through paypal as their is a 3rd party involved ie Paypal.

Long and short of it is dont use Paypal thinking that you have Section 75 to fall back on.

Your bank can action a chargeback against Paypal similar to Paypals own dispute process. When you pay via paypal you are tecnically just depositing money into your paypal account and instantly transferring it to the seller.

So your payment/contract is for paypal to transfer the money to the seller which they have done in these cases. Therefore there is not a breach of contract.

I think the Section 75 tab above is quite clear on Section 75 and paypal and also foreign transactions.

Flyboy152

gnaril wrote: »

Seems to be clear confusion on this post.

Section 75 would cover any overseas transaction. This was ruled years back that Section 75 would cover these transactions also.

Section 75 will not cover any transaction that is paid through paypal as their is a 3rd party involved ie Paypal.

Long and short of it is dont use Paypal thinking that you have Section 75 to fall back on.

Your bank can action a chargeback against Paypal similar to Paypals own dispute process. When you pay via paypal you are tecnically just depositing money into your paypal account and instantly transferring it to the seller.

So your payment/contract is for paypal to transfer the money to the seller which they have done in these cases. Therefore there is not a breach of contract.

I think the Section 75 tab above is quite clear on Section 75 and paypal and also foreign transactions.

Which is the whole point of the thread and is the reason why I am asking, "why should anyone use PayPal to pay for purchases, of over a hundred pounds, from a business seller who accepts credit cards?" When section seventy-five gives them considerably more protection that PayPal's own dispute resolution.

dan_l

The initial question "What is the point of Paypal" has been answered (Ebay forces you to use it as a seller, protection on transactions less than £100 which you don't get with S75, ease of use etc), also not everybody has credit cards or debit cards that support S75, plus some people just don't like giving credit cards online to websites they are not familiar with. These reasons alone are enough for it to exist and for people to use it.

Flyboy152 wrote: »

Which is the whole point of the thread and is the reason why I am asking, "why should anyone use PayPal to pay for purchases, of over a hundred pounds, from a business seller who accepts credit cards?" When section seventy-five gives them considerably more protection that PayPal's own dispute resolution.

Moving on to the new question aboce, IME most people buying something from a website other than Ebay, for over £100 who has a credit card would probably opt to use the credit card over Paypal anyway. I don't think there are any benefits in using Paypal over the credit card in this scenario but I doubt this is Paypals main target area anyway.

Andy_L

dan_l wrote: »

The initial question "What is the point of Paypal" has been answered (Ebay forces you to use it as a seller, protection on transactions less than £100 which you don't get with S75, ease of use etc), also not everybody has credit cards or debit cards that support S75, plus some people just don't like giving credit cards online to websites they are not familiar with. These reasons alone are enough for it to exist and for people to use it.

Is the point of it also that it allows somebody to sell stuff over the internet without having to set up a credit card merchant account

dan_l

Andy_L wrote: »

Is the point of it also that it allows somebody to sell stuff over the internet without having to set up a credit card merchant account

I'm sure that will have been a reason why people have used it in the past.

Flyboy152

dan_l wrote: »

The initial question "What is the point of Paypal" has been answered (Ebay forces you to use it as a seller, protection on transactions less than £100 which you don't get with S75, ease of use etc), also not everybody has credit cards or debit cards that support S75, plus some people just don't like giving credit cards online to websites they are not familiar with. These reasons alone are enough for it to exist and for people to use it.



Moving on to the new question aboce, IME most people buying something from a website other than Ebay, for over £100 who has a credit card would probably opt to use the credit card over Paypal anyway. I don't think there are any benefits in using Paypal over the credit card in this scenario but I doubt this is Paypals main target area anyway.

Actually the OP addresses the question of business sellers and since then we have been reminded of the one hundred pound limit, we have also established some card issuers will refund below a hundred pounds. But we also now agree that some business sellers prefer PayPal to setting up merchant accounts. Out of interest what is the comparative costs between the two?

If we are to accept the advantages to PayPal, surely there should now be a campaign for them to be included within the auspices of the CCA and be governed by section seventy-five.

I cannot think of any credit cards that are not subject to section seventy-five.

wealdroam

Flyboy152 wrote: »

If we are to accept the advantages to PayPal, surely there should now be a campaign for them to be included within the auspices of the CCA and be governed by section seventy-five.

Are Paypal offering consumer credit then?
Such that it falls under the Consumer Credit Act 1974?
I think not.
Paypal will not pass a buyer's money on to the seller before they have received that money from the buyer.
No credit involved.

Is the fact that Paypal are based in Luxembourg of any consequence?

Flyboy152

wealdroam wrote: »

Are Paypal offering consumer credit then?
Such that it falls under the Consumer Credit Act 1974?
I think not.
Paypal will not pass a buyer's money on to the seller before they have received that money from the buyer.
No credit involved.

Is the fact that Paypal are based in Luxembourg of any consequence?

But, if the transaction has involved the use of a credit card, it is not beyond conception, to push for the use of third party payment transactions to be included within the consumer credit act.

If I buy a two hundred pound camera from Maplins with my credit card, Maplins are also not providing me with credit services, but the purchase is still covered by section seventy-five of the CCA.

halibut2209

No, Maplins are providing you with the goods, and if they are faulty you have a claim

Paypal is providing you with a service, and if the service is faulty then you have a claim. But only against what you are paying for. In this case, it's the service, not the goods at the other end.