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

Tachograph

Forget the warning I have used PayPal on eBay and other traders with no problems
So section 75 !!!!!!ed but PayPal have their own resolution centre and on the occasions I have used it they endured I had a full refund off of the seller, also when seller would not agree PayPal paid me from sellers account
Remember identity fraud
With PayPal they know your card details not every potential thief so don't worry remember this site ok but the originator made a fortune from selling it
eBay also have a buyer safeguard scheme:j:j

Patr100

I believe E Bay recently changed their internal rules so it strongly favours the buyer. In most cases, basically in a dispute, they will eventually automatically side with the buyer for a refund.
The "you will get the item you expected or your money back" promise.
Some sellers were concerned , it could you open to abuse , if I recall.

cdsheldon

Although I am aware of this issue and always try to pay by credit card direct, there are more and more sites (including of course eBay) who only allow payment by PayPal. So unfortunately we have no option but forego the valuable Section 75 protection. I believe the same problem applies to purchases made through Amazon marketplace.

cepheus

Does this mean we should be buying items £100+ with the '3rd party Amazon sellers' directly rather than through Amazon, assuming they accept credit cards and the price is as competitive?

Is there anywhere else that Section 75 doesn’t work?

This isn’t just PayPal, it's any agency. Another big one is if you buy goods on a credit card from Amazon third-party sellers (as opposed to buying goods which Amazon directly sells itself, clearly listed as 'dispatched from and sold by Amazon'), listed with the company name you're buying it from. Here Amazon is acting as an agency.

Terry98

Patr100 wrote: »

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.

I only pay cash for 'collection only' sales under £30. It's never happened but if there was something wrong with the goods I would not pay for them.

Patr100

Terry98 wrote: »

I only pay cash for 'collection only' sales under £30. It's never happened but if there was something wrong with the goods I would not pay for them.

That might work for some items but obviously others (eg electronic gadgets etc not seen working) you could get home and find they dont work. You couldn't "not pay " for them at that stage.

samwardill

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!

roddydogs

Paypal take Amex, whilst the seller might not.

samwardill

roddydogs wrote: »

Paypal take Amex, whilst the seller might not.

Some AmEx are charge cards (like the gold card) are also not covered under section 75. However AmEx make enough money that they can afford to uphold section 75 rights, and they do generally do so, but you have no recourse to a court if they do not.

diddydavro

I'm confused. I don't have a PayPal account but bought something from eBay by credit card. I entered the card details and got the message "Being processed by PayPal". Does this mean PayPal are acting as the processing agent and the purchase IS covered by Section 75?