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

Youngy

Interesting 'Apple Pay' article:
http://www.moneysavingexpert.com/news/banking/2015/06/apple-pay-coming-to-uk-next-month-heres-how-it-will-work

samwardill

I think that a service for paying for private holiday lets abroad has got to be a good market for someone to exploit. PayPal is probably slightly better than bank transfer and may not cost much more after charges. Escrow sounds lie a good idea but I'm not convinced there is a suitable provider out there. Bigger companies like vrbo have their own insurance scheme. I've always found this the least enjoyable part of my holiday planning.

samwardill

FairTrial wrote: »

Transpact.com is Europe's leading escrow company, and over the last five years has protected many millions of pounds for thousands of individuals and businesses.
Transpact.com is authorised and regulated by the FCA as a Payment Service Provider.

So yes, there are certainly suitable providers out there.

[Disclosure - I work for Transpact.com, but it is a great company]

I think you need to get recommended by a few holiday letting websites before this would really take off. I also think that a tailored holiday letting service is likely to get more traction. I hope you are successful and you may well become a suitable provider but I'm not convinced you are one yet. However I'll try to convince the letter to use you next time.

mandymac_2

When I use Paypal I don't enter a credit or debit card, it takes it directly from my bank account.
How is this affected by Section 75?

jayess_2

I am guessing that TopCashBack and Quidco are 'agencies'?

jayess_2

BartyBoy wrote: »

Out of interest, is PayPal regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK?

http://www.ebay.co.uk/gds/Paypal-what-to-do-if-it-goes-pear-shaped-/10000000000041877/g.html

says it is

jayess_2

Biggles wrote: »

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.

I believe what it means is when you pay your PayPal bill by credit card (I know there is an option to have it taken straight from your bank account). ie you pay for an item by PayPal who then takes the money from your credit card. Hope this makes sense to you.

tronator

Why can't the article highlight, what part got updated yesterday? I read it last week and the weekly newsletter yesterday said there is an update. I don't want to read the whole article all over again.

GraceCourt

stork wrote: »

The article is misleading and wrong. The relationship between the card issuer and the seller is sufficient to trigger s.75, even where PayPal is somewhere in the chain. This much is clear from the case law -- which has been tested in the very highest Court in the land (OFT v Lloyds TSB etc.). Even where a payment is taken by an agent, this does not of itself defeat s.75, as has also been stated in case law (Bank of Scotland v Truman).

Unfortunately, the FOS got it wrong when they first considered the issue, and the card issuers were presumably delighted. S.75 does apply, but the only way for a customer to enforce this is through the Courts (although a clear indication that you will go to Court may be enough to 'persuade' a card issuer to honour s.75 through 'good will').

Instead of repeating and promoting the FOS's defective position on this issue, MSE should be fighting the consumer's corner, and campaigning to get FOS to align with the case law.

I have three words to describe this response: wrong, wrong, and WRONG! Even worse, a good number of users have thanked this poster, which shows how damaging it can be when someone purports to know what they are talking about, but clearly doesn't. So, with apologies to those that are already aware of the warning that Martin has so usefully highlighted, here goes...

Paypal communicates as "PayPal (Europe) S.à r.l. & Cie, S.C.A", based in Luxembourg, because although one of their UK companies was licensed as an Electronic Money Issuer with the Financial Services Authority from 2004, that licence ceased in 2007, when the company moved to Luxembourg. However, the terms and conditions of the User Agreement claim that customers' complaints can be referred to the Financial Services Ombudsman for an adjudication if these remain unresolved - but this isn't true any more, Paypal having not been licensed since 2007.

One other important fact is that Paypal refuses to identify which of its UK subsidiaries* will accept a summons on its behalf when requested - I asked them six times in total, because I wanted to serve a Notice of Claim (County Court summons) on them to recover damages under English law and service of the claim can only take place in England and Wales, unless you use the rather more complex Part 78 Civil Procedure Rules 1998 process, which sets out the details of how to use - in England and Wales - your European Law rights under Regulation (EC) No 1896/2006 of the European Parliament and of the Council of 12 December 2006.

So, stork got it wrong on all counts - Martin is correct in saying that there are NO Section 75 rights, and if you want to prove him wrong by enforcng these "rights" against Paypal, you had better download yourself a copy of Part 78 CPR 1998 because you are going to need it! Would you trust anyone who doesn't want to return to the UK because they want to avoid being served with a Court summons? :rotfl:

BartyBoy wrote: »

Out of interest, is PayPal regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK?

BartyBoy, hopefully this answers your query... the short answer is "NO!"

* Three Paypal subsidiary companies in England, all at the same address:

Paypal (Europe) Limited, company number 04056498;
Paypal (UK) Limited, company number 05468033; and
Paypal SE, company registration number SE000007

All these have registered offices within the jurisdiction of the English Courts as all three have their registered office at:
Whittaker House
Whittaker Avenue
Richmond, Surrey
TW9 1EH

GraceCourt

jayess wrote: »

http://www.ebay.co.uk/gds/Paypal-what-to-do-if-it-goes-pear-shaped-/10000000000041877/g.html

says it is

It says "The end of the World is nigh" on a placard carried by a man in our town centre, but that doesn't mean it's true - see my last post - Paypal's claim isn't true either.