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

stork_2

According to the judgment of the House of Lords, s.75 can apply in all 4 of your scenarios.

According to the FOS, s.75 probably doesn't apply in scenarios 1 and 2, and possibly does in scenarios 3 and 4.

In practice, in most cases you'd simply initiate a chargeback anyway, in which case s.75 doesn't come into it at all.

tain wrote: »

Could I have a little clarity as to when this applies please? There are a number of scenarios, and it's only the one in bold that I'm concerned with.

1. You buy something on ebay and pay through paypal. Your stored card on paypal is a credit card (no sec75)

2. You go to joeblogs.com and buy some goodies. They give the option of 'pay through paypal', whereby you log in to your account and pay via your stored card, which is a credit card. (no sec75)

3. You're purchasing a treat from a small, independent website. Their only method of processing payments is using a paypal portal. You don't log in to any paypal account, and there is no paypal stored card. They allow you to type your credit card details straight into the paypal portal and it makes an instant payment, with no details being stored. No section 75???

4. Exactly as in point 3, but they use something like Sage Pay instead of the paypal version. No section 75?


In points 1 and 2, if you sold something on ebay then there's every chance your account could be in credit, so the credit card may only be used for part-payment. In the last two points, there's no option of this as the payment is coming straight off your card.

stork_2

stator wrote: »

What if you use Paypal Pay After Delivery. Then wouldn't Paypal be the credit provider?

I doubt it. You're not really taking a loan with PayPal to pay for your purchase, and then paying off that loan with a credit card. (If you were, the card issuers would probably categorise it as a cash advance rather than a purchase).

All you're doing is taking advantage of a deferred-payment arrangement between you and the merchant which happens to be facilitated and underwritten to some extent by PayPal. So pay after delivery shouldn't defeat s.75 liability.

Biggles

tain wrote: »

Could I have a little clarity as to when this applies please? There are a number of scenarios, and it's only the one in bold that I'm concerned with.

Same here really, tain. And, despite asking back in post #12, I'm still none the wiser as to which of those scenarios MSE Amy was taking about in the OP, or which one the article was about.

It hasn't helped the debate that most of the posters don't seem any more sure, yet are supplying answers regardless.....

brooza

I removed my debit card from my PayPal account and just use my credit card because of the s.75 coverage.

If this article is correct, maybe I'd be as well linking to my bank account instead. It would make it easier to manage my finances (not having to remember to pay each transaction off on my card)

beerleo

chanz4 wrote: »

paypal is forced if using ebay, no choice.

Yes I was forced to reluctantly open a Paypal account a long time ago in order to make a purchase on Ebay. But you are in fact not forced to use it. On buying on Ebay when you go through to the Paypal payment page, bottom right in small print you will see the option to pay by credit or debit card, and you are still covered by their buyer protection and money back guarantee. I claimed recently on this with a purchase Id made nearly 3 mths previously while abroad. I was immediately refunded the full £15 amount by Paypal no questions asked. But I still dont like or trust Paypal as many years ago they were posting false info. on ebay to discourage people from paying with Amex which costs them more in commission. Worse still, they also, without informing me, once declined a payment I made with Amex through them to pay for a flight in Australia. It cost me £60 more to rebook when I found out a few days later. I was very lucky seats were still available. Paypal claimed Amex never presented the payment. Amex assured me it was declined. Paypal refused to compensate my loss so even though I normally use visa, every purchase I make on Ebay, which are many, I make a point of paying with Amex. Im sure the extra commission they pay to Amex is already more than my £60 loss. Anyway, back on topic; could someone please clarify if these ebay credit card payments on the Paypal payment page, though rarely more than £100, are covered by section 75 or not.

Patr100

beerleo wrote: »

Yes I was forced to reluctantly open a Paypal account a long time ago in order to make a purchase on Ebay. But you are in fact not forced to use it. On buying on Ebay when you go through to the Paypal payment page, bottom right in small print you will see the option to pay by credit or debit card, and you are still covered by their buyer protection and money back guarantee.

You are still using PayPal as a payment gateway, but as already mentioned, you are doing it as a "guest" , without an account.

Patr100

samwardill wrote: »

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

For reasons that are not made clear, PayPal is being splt from E Bay as a separate company.

Spin-off from eBay
It was announced on September 30, 2014, that eBay would spin off PayPal into a separate publicly traded company, a move that was demanded already in 2013 by activist hedge fund magnate Carl Icahn. The spin-off is expected to be completed sometime in second half of 2015.[43][44][45] PayPal President Dan Schulman was elected to serve as the company's CEO.[42]

Just found this while Googling

BEWARE: Accepting PayPal's new User Agreement signs you up for COLD CALLS

http://www.express.co.uk/life-style/science-technology/582130/PayPal-User-Agreement-Terms-Conditions-Updated-Cold-Calls-RoboCalls

BartyBoy

Patr100 wrote: »

You are still using PayPal as a payment gateway, but as already mentioned, you are doing it as a "guest" , without an account.

Exactly, there is no other way to avoid using paypal on ebay. most sellers use paypal as payment anyway, only a few of them offer bank transfer and personal cheque.

chanz4

its because of all the scammers out there

alanc41

By coincidence, and after reading the article on PayPal this Tuesday, I ordered some foam online, paid by my Mastercard and received the usual confirmation email from the company.
On Wednesday morning however, I received an email from a company called WorldPay (never heard of them before now) telling me they are processing my transaction on behalf of the company with whom I had placed the order.
Although I have no reason to believe my order will not be honoured this raises a number of issues;
Does this manoeuvre deny me the protection under Sect.75 even though I was not told about it?
Is it OK for a company to allow another access to ALL my card details without my consent?
Are card companies 'happy' with this arrangement because it could let them off the hook?
As it happens the cost is under £100 but the process concerns me.
alanc41