Warning! Don’t use PayPal to pay on a credit card 2 June 2015 at 9:50AM in Credit Cards 186 replies 47.7K views

Former_MSE_Amy

Warning! Don’t use PayPal to pay on a credit card guide.

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

[Deleted User]

Having read this article, I'm wondering about the purchases I make on eBay. Most sellers insist on PayPal and my account is linked to my credit card. I rarely buy items over £100 so it probably doesn't matter but I would be interested in how people pay for goods bought from eBay.

adindas

The title is misleading the people who just read the headlines and do not read the article carefully.


Many people are PayPal to pay item won on eBay. Items are normally either less than £100 or second-hand item (not brand new) which could be owned by private or small enterprise. In this case you will get more advantage paying by PayPal rather then credit card because:
- You do not disclose your CC number (more secure)

- You are guaranteed by eBay and/or PayPal if you do not received the item or items not as described.

It is good to know if people will have a better option than Paypal when paying items which are not protected by section 75 anyway e.g. second hand, private vendors, etc

Lorde_Sealand

The article by Martin Lewis might have several points of importance to the user of paypal, but we feel it should have also pointed out more clearer the refund and protection Policy of paypal and not just only a link to the protection policy. Hence I find it slightly biased by scaring people into the believe that they are not protected at all and create some sort of scaremongering. I am not from paypal, but my business and me personally use paypal and never ever had any issues at all. It is actually often more difficult to get the credit card companies to act on your behalf to sort out any issues you might have with a purchase.



part copy of paypal terms:

Buyer Protection
If an eligible item that you’ve bought online doesn’t arrive, or doesn’t match the seller’s description, our Buyer Protection will reimburse you for the full amount of the item plus postage and packaging costs. Buyer Protection covers all your online purchases, on eBay or on any other website, when you use PayPal.
For more information, see our User Agreement

Examples
You bought a book but got a DVD, you bought a new item but got something that was used, you purchased 3 items but only got 2, the item was damaged in transit, the item is missing major parts (that the seller didn’t disclose), or you purchased an authentic brand but got a knock-off instead. Tell us.

Guidelines
If the seller has accurately described an item, but you’re just not happy with it, if you fail to open a dispute within 180 days of purchase, or if your account is not in good standing, you are mostly likely not covered.

Items Not Covered
Items like real estate, motorised vehicles (of any kind), custom-made items, industrial machinery (for manufacturing), prepaid cards, or items that violate our policies or eBay’s policies, anything you buy in person, or money transfers to friends or family.
Account Protection


You’re not liable for unauthorised purchases made from your account.
Refunds


If an order doesn’t arrive or match the description, we’ll reimburse the full cost of eligible purchases and paid delivery costs.



greetings


SixtySomething Over Sixty LifeStyle Online

BartyBoy

adindas wrote: »

The title is misleading the people who just read the headlines and do not read the article carefully. Many people are PayPal to pay item won on eBay...

Many high street stores are now also using PayPal as a payment method, and that is where I got my fingers burned some months ago, lesson learned.

BartyBoy

Out of interest, is PayPal regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK?

TomJ

it's just the companies internal code

s/companies/company's/

Sorry for the pedantry, it just bothers me.

BartyBoy

Lorde_Sealand wrote: »

Items Not Covered
Items like real estate, motorised vehicles (of any kind), custom-made items, industrial machinery (for manufacturing), prepaid cards, or items that violate our policies or eBay’s policies, anything you buy in person, or money transfers to friends or family.

Do credit cards also have things that the credit card companies don't cover too?

chanz4

paypal is forced if using ebay, no choice.

stork_2

The article is misleading and wrong. The relationship between the card issuer and the seller is sufficient to trigger s.75, even where PayPal is somewhere in the chain. This much is clear from the case law -- which has been tested in the very highest Court in the land (OFT v Lloyds TSB etc.). Even where a payment is taken by an agent, this does not of itself defeat s.75, as has also been stated in case law (Bank of Scotland v Truman).

Unfortunately, the FOS got it wrong when they first considered the issue, and the card issuers were presumably delighted. S.75 does apply, but the only way for a customer to enforce this is through the Courts (although a clear indication that you will go to Court may be enough to 'persuade' a card issuer to honour s.75 through 'good will').

Instead of repeating and promoting the FOS's defective position on this issue, MSE should be fighting the consumer's corner, and campaigning to get FOS to align with the case law.

Booshybubby

What about a PayPal Mastercard?
I have one, and it's used like any other card, with the money spent coming off your PayPal balance.
But as its a Mastercard, are we covered by Section 75 or not??