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

meldrewinverness

FairTrial wrote: »

Even sending a deposit, followed up with cash on arrival, is a frequent scam and often leads to your losing your deposit and arriving at holiday destination to find you have no real accommodation.

Only ever pay for a holiday rental with a credit card directly, or pay through escrow with an FCA authorised firm (which fully protects both the landlord and the holidaymaker).

I don't know of any other safe methods.
Any other method, and you are taking a huge risk that many have found to their cost to be disastrous.

Latest SCAM - sell expensive item on eBay. Buyer says it is a fake - eBay say don't bother to return item - Paypal gives money back - you lose valuable item- paypal deducts from YOUR account!! eBay suggest go to Trading Standards or Small Claimsas as they have no way of reversing their original decision. DONT HAVE A PAYPAL ACCOUNT THEN YOU CANT BE CHARGED.

meldrewinverness

FairTrial wrote: »

Even sending a deposit, followed up with cash on arrival, is a frequent scam and often leads to your losing your deposit and arriving at holiday destination to find you have no real accommodation.

Only ever pay for a holiday rental with a credit card directly, or pay through escrow with an FCA authorised firm (which fully protects both the landlord and the holidaymaker).

I don't know of any other safe methods.
Any other method, and you are taking a huge risk that many have found to their cost to be disastrous.

RECENT SCAM
Sell rare item on eBay - say signed sporting memorabilia. Buyer says they have changed their mind/cant afford so should pay return postage. Seller gets something of no value back ie not what sold. Paypal refunds money from your account before you make correctly worded complaint. eBay suggest contact Trading Standards or Small Claims Court as they have no way of reversing settled(?) claims. DONT HAVE A PAYPAL ACCOUNT AND YOU CANT LOSE THE MONEY.

chommin

Where does one stand when their separation occurs ?

Pertinax

Even sending a deposit, followed up with cash on arrival, is a frequent scam and often leads to your losing your deposit and arriving at holiday destination to find you have no real accommodation.

Only ever pay for a holiday rental with a credit card directly, or pay through escrow with an FCA authorised firm (which fully protects both the landlord and the holidaymaker).

What Escrow Services are there ?
I previously worked in IT, where the cheapest escrow service was £800.
A previous post mentioned a fee of a few pounds.
Can we have some names or links, please ?

hanrutmoe

I'm conflicted, I often use PayPal as it allows me to pay with my main credit card (an American Express) when providers don't accept AMEX by default.

So either I miss out on my AMEX benefits, or risk PayPal's buyer protection scheme. Having yet to ever make a claim on my credit card, I'm inclined to risk it.

Pertinax

According to FCA register:
Firm name Post code Previous/Trading As names PI Status Agent Status
Anpa Forward Limited NW11 9HX Transpact.Com Authorised Payment Institution

Anpa Forward Ltd NW11 9HD Secure Uk Escrow , Transpact.Com, Trustedfriend.Com, Trustedfriend.Com No longer registered to provide Payment Services

Pertinax

Does being a Payment Service Provider mean you can offer escrow services ?

c-m

samwardill wrote: »

Well done Martin for bringing this to people's attention.

There is also an issue is with PayPal buyer protection for goods under £100. PayPal offers less protection than consumers are entitled to under the sale of goods act. The issue arises when goods supplied are significantly not as described. The law says that the vendor should pay for return of goods that are significantly not as described. PayPal requires users to pay for postage themselves.

PayPal's policy also contradicts the advice given on eBay website (I'm sure you are aware that PayPal is part of eBay). See http://www.ebay.co.uk/gds/Returning-goods-Faulty-or-not-who-pays-postage-/10000000142555623/g.html

In practice my issue was resolved because I threatened PayPal with the financial ombudsman and they capitulated. However I'd like to see PayPal forced to change the terms of their buyer protection. I certainly will not use them again until they do!

Well done? It's been well known for a decade or more that as paypal acts as an intermediary you don't have protection under the consumer credit act.

The title of the thread is misleading, there is nothing wrong with using a credit card with Paypal, just know that the protection offered is different, take time to look it over.

For smaller purchases the paypal disputes process is quick and easy. I've used a fair few times. For large purchases you'd want the full protection of s75 though.

FairTrial

Pertinax wrote: »

According to FCA register:
Firm name Post code Previous/Trading As names PI Status Agent Status
Anpa Forward Limited NW11 9HX Transpact.Com Authorised Payment Institution

Anpa Forward Ltd NW11 9HD Secure Uk Escrow , Transpact.Com, Trustedfriend.Com, Trustedfriend.Com No longer registered to provide Payment Services

Hi Pertinax,

This is just an example of the FCA being cack-handed and unable to function appropriately.

Transpact.com (trading name of Anpa Forwrd Ltd) was registered as a Payment Service Provider with the FCA (originally called the FSA) from 1 November 2009 to 29 July 2011.
From 29 July 2011, Transpact.com (trading name of Anpa Forwrd Ltd) upgraded its FCA status from registered to the top level of Payment Service Provider - authorised.

The FCA register is a mess, and shows two entries - one for the pre 29 July 2011 period and one for the post 29 July 2011 period.

It seems to show different companies, when in fact they are exactly the same company over two periods. The company is currently fully correctly authorised and regulated.
The FCA says there is nothing they can do to clear up this mess on their register - they are wrong, but you cannot argue with the FCA (believe me, we have tried).

At least the FCA online register is roughly fit for purpose, unlike HMRC's online register of Money Service Businesses, which is bordering on unusable, and appears on many browsers to be a sham website.

[Deleted User]

c-m wrote: »

For smaller purchases the paypal disputes process is quick and easy. I've used a fair few times. For large purchases you'd want the full protection of s75 though.

In fact Ebay sellers complain that Paypal is too biased towards consumers. So, I am a consumer and I am quite ok with Paypal. There are other ethical issues but they have nothing to do with consumer protection.