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

Biggles

adindas wrote: »

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

I read the title and the article and still don't know what it's talking about.

Am I right that this isn't where you 'Pay by PayPal' but where a retailer offers you the facility to pay by credit card but using PayPal as a processing agent?

If so, I don't know why it couldn't have said so. If not, I really don't know what they're trying to say.

molerat

Tabloid journalism

d123

Booshybubby wrote: »

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??

The PayPal MasterCard is a prepaid card, so no s75.

skater_kat

I would like to know if this is also a case of a 'broken chain' when you pay self employed / tradespeople etc via card. for example recently i paid a locksmith £200 and they only way i could pay him was via his 'izettle' card machine on his phone.
i had a another transaction with was to a firm who used 'SumUp' to take their card payments. does this mean s75 does not apply, even if there was no other method of payment available?

DCurrer

Be aware that credit card cashback doesn't always work with PayPal, either. My Santander 123 card, for example, pays 2 per cent cashback on department store purchases, but if I buy something from John Lewis online and pay via PayPal, funded by my Santander 123 card, I don't get the 2 per cent cashback. This is because Santander treats PayPal as the merchant - not John Lewis!

Double_V

This is very useful.

Thanks a lot for sharing this.

JK3939

I like to use paypal rather than a credit card as I don't trust sites to hold my credit card details safely. Is there a way round this?

gbswales

For small traders accepting credit cards is a complicated and expensive business which is why on sites like ebay you are not usually given a choice of payment method. If you buy items costing more than £100 on ebay then your decision may be to either use paypal or buy the item elsewhere.
I think that some people are unecessarily worried about using a credit card online - credit card companies are usually better than pay pal when dealing with fraud. Just make sure that you always check your statements to notice any irregularities or mistakes

Pertinax

I can see the Financial Ombudsman Service's (FOS) argument about PayPal being an agent because "it merely acts as the payment intermediary by transferring the money from the buyer's account to the seller's account. " if you use a debit card or a mobile phone. However, I wonder if that has been defeated by case law. Has the latest writer checked this with FOS ?

In the case of credit cards, it cannot be the purchaser's responsibility to know how PayPal is acting without being visibly told. I think PayPal should always be regarded as a “merchant acquiring service”, and I wonder if it needs to be tested.

It would be useful to have PayPal's response to this issue.

smjxm09

What if you rent a uk holiday home for a week via one of the many companies that sell these types of holiday and pay via a credit card? The homes are always owned by a third party so is the holiday company just an agent and section 75 does not apply?