credit cards and paypal

webbhost

Hi,

This ones just out of curiousity as I was talking to a mate about it and didn't really know what the situation would be..?

In normal instances of using a credit card online, if the item purchased does not turn up, the credit card company have to refund you if you are unable to arrange a solution with the shop, and then the credit card company deal directly with the shop right??

What happens in the instance of e-bay?

Lets say I buy an item, and pay with a credit card - via paypal.

The item never turns up because the item is from a hacked account, however paypal / ebay's resolution centre turn in favour of the seller and do not allow the refund.

What happens then if you contact the credit card company, do the same rules apply with regards to them refunding you and then taking the dispute up with ebay / paypal themselves?

Or, because you used middle-man paypal are you basically supplying funds into your account with the credit card and the actual transaction of the goods is entirely with ebay / paypal and nothing to do with the credit card company??

How would the above scenario roll out if it ever came to it and I had to ask my credit card company for help?

Note that this is not a case (atleast not at the minute and hopefully never), but just out of pure curiousity

[Deleted User]

The CC company could issue a chargeback against paypal but it's against the T&C's so you will end up with debt collector threats and all sorts.

webbhost

Ouch pretty nasty then if it came to it and probably not worth the hassle!.. Think the debt collectors would be successful?

Reason it all came up by the way was I was a victim of fradulant activity on a hacked e-bay account, I received a iphone charging cable instead of a robotic hoover.. pretty big difference!

Luckily ebay ruled in my favour and I wasn't affected in this instance!

dalesrider

webbhost wrote: »

Lets say I buy an item, and pay with a credit card - via paypal.

The item never turns up because the item is from a hacked account, however paypal / ebay's resolution centre turn in favour of the seller and do not allow the refund.

What happens then if you contact the credit card company, do the same rules apply with regards to them refunding you and then taking the dispute up with ebay / paypal themselves?

Your CC co could attempt a chargeback, but there is a good chance that paypal can reject it on the basis that they have done what they were contracted to do which is move the money from you to the seller.

Your CC does not refund you the money it is claimed back from the other parties bank, which is why refunds can take a couple of days. Then they have 60 days to argue their case to get the money back again.
That would cover a Visa debit card as well.

Also be aware there is no section 75 cover when using paypal or such money moving co.
You cannot agrue breech of contract against paypal etc as they are only contracted to move the money, which they have done. Not provide the goods/service.
As it has to be direct with the company/retailer who are providing the goods/service.

CrispieS

this is good to know, I'd always thought you could chargeback against the CC. Saying that, I wouldn't worry too much as I've always understood that PayPal always airs on the side of the buyer rather than the seller.

thenudeone

CrispieS wrote: »

I've always understood that PayPal always airs on the side of the buyer rather than the seller.

No, but they might err on the side of the buyer though.

webbhost

with regards to items not being delivered, I think the standards is that the seller does not have to prove that they Shipped the item, they have to prove that you received it.. Worth knowing if you sell goods! Keep things on recorded delivery and it covers against this.