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

cashisking1

deleted by user

FairTrial

PayPal spent millions on their 'PayPal is safer' campaign.

On a complaint a few years ago, the ASA (Advertising Standards Authority) ruled that PayPal is safer, even though a major part of the complaint was based on the acknowledged loss of Section 75 protection when using a credit card.

To my mind, one of the more absurd ASA rulings, and a real shame it has never been overturned - PayPal still uses the 'PayPal is Safer' tag.

See this old MoneySupermarket thread where the ASA ruling was first discussed:
moneysupermarket.com /community/forums/t/asa-rules-paypal-is-safer-than-credit-cards-45167.aspx
(remove space in link above).

There are also a couple of old discussions on this MoneySavingExpert forum about the ASA ruling from around that time.

Terry98

chanz4 wrote: »

paypal is forced if using ebay, no choice.

That is not exactly true. I have bought quite a few things on ebay and paid cash.

Paypal let me use my Amex Cashback Credit Card so if I buy something over £100 I will have to weigh up if it's worth taking the risk!

cashisking1

deleted by user

SuzieSue

I bought something for over £100 using PayPal. It was custom made so the lead time was 4-6 weeks. Within a couple of days of placing the order, I realised that the item wasn't cotton and therefore wasn't suitable. It was completely my fault and I didn't hold out much hope of getting a refund, but I rang the PayPal helpline and they contacted the seller and gave me a refund immediately. I assume it was because it was custom made and there was no way they would have started making it by the time I asked for a refund.

adindas

gbswales wrote: »

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

I pay by credit card all the time from a REPUTABLE merchants as I could get the benefit of cashback and s75 if applicable.

But think about, online casino, gambling, !!!!!! sites are you comfortable to leave your card detail with them ?? Do that and you might burn your finger falling into the trap of recurrent transactions, etc or more seriously fraud using your CC details.

On eBay for small items which are not covered by s75 anyway such as less than £100, secondhand, private vendors I pay by PayPal using credit cards as I get the benefit of both words, PayPal protection and cashback from credit cards. I would like to know if people have a better option than PayPal if paying the items like this.

Stompa

This is useful info. Mind you, Paypal is such a lousy system that I only ever use it as a payment method of last resort anyway.

pennywise63

Abrielle wrote: »

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.

I have been useing credit card with paypal for 10 years now to pay for Ebay purchases , and so far no problems , so what has changed recently to bring this warning ?.Pennywise63

Be_Happy

Does section 75 work if buying/making bookings through something like Groupon or Itison?

Patr100

Terry98 wrote: »

That is not exactly true. I have bought quite a few things on ebay and paid cash.

And what protection on E bay do you have for expensive items when you pay cash?
Presumably face to face or is it envelopes in the post?

Asking to be paid in cash to a total stranger who might be miles away (whether you are in principle happy to do so or not) when there are options for a paper or electronic trail , is a haven for the scammers etc.