paypal and barclaycard

johners77

I have just signed up for a barclaycard platinum and have been given a decent credit limit. i am looking to purchase some cricket goods from india which are to be made to my designs. for added security i want to pay via paypal using my new barclaycard. does anyone know if i will get charged for this? i dont want to go ahead if im going to be charged alot for the process. will i need to prove this is for goods so not to be charged cash advance charges?
thanks

Scarpacci

I don't think any CC company treats PayPal as a cash advance, so there shouldn't be any charges there. PayPal's fees will be deducted from what the seller receives, you won't be explicitly paying any processing fees.

One word of warning: paying by PayPal could potentially affect the protection you get for paying by credit card. It's a grey area but it's possible the cover would only apply to the consumer/PayPal side of the transaction and not the PayPal/merchant side. By this I mean the CC cover would only extend to ensuring the amount taken from your card is then provided as PayPal "credit", it wouldn't be covering whether the merchant provides the goods you bought with PayPal money. If something goes wrong with the transaction and PayPal take the merchant's side, you might not have recourse with the CC company.

connormill

If it's anything like google checkout then Section 75 does not apply

salau2

There are two principal areas of concern here. Firstly if you use paypal then indeed the transaction is likely to be viewed as a transaction to a third party and thus no security will be provided by the Consumer Credit Act - s.75.

In case you are unaware if you purchase any goods with your credit card (valued between £100 - £30000) and those goods are; not as described, of unsatisfactory quality or not fit for purpose, you can claim your money back from the creditor (in your case Barclaycard) under s.75 Consumer Credit Act – this also applies when goods fail to turn up or the trader goes bust (see - consumer direct website for a template letter).

The Consumer Credit Act may also provide remedy for inadequate service as well as goods though I illustrated goods in the example as you are purchasing bespoke goods from India. Though may also be a service as tailored for you.

Secondly, you are buying foreign goods and people often wonder whether the Consumer Credit Act will protect you when buying goods abroad. Well I can say that in the case of OFT v Lloyds TSB and others Lord Hoffman states “There is nothing in the language of Section 75(1) to exclude foreign transactions”. Therefore, prima facie (at first instance) it appears that the goods bought in India would be protected under the Consumer Credit Act if you bought your cricket items from India and used your credit card directly.

However, if you used your PayPal account you may forfeit the rights prescribed by the Consumer Credit Act and have to rely on the PayPal resolution system and their remedies. Although, if the Indian trader has a Commercial Entity Agreement' with Paypal or its equivalent in India you could still possibly claim for a breach of contract or possible misrepresentation though this remains a grey area.