eBays new payment system

vtc6

I remember years ago my ex tried to file a chargeback with her credit card company after a problem with a purchase. But the credit card company said that they won't allow it because she paid via Paypal and Paypal is a money sending service and not a payment service. So she had effectively "sent the retailer money" via Paypal rather than paying via Paypal. This was even though she used her credit card.

Does anyone know if this is still the case or have things changed? I always found it unfair because Paypal's protection is way less than the protection you get via your card company so it always felt that by using Paypal I was giving up my rights.

I've just noticed that the eBay checkout lets you pay by credit card now without going through Paypal. The new card payment system still says that the payment is processed by Paypal so not sure how the banks would view it if a chargeback attempt was made.

bris

The credit cards still see Paypal as a third party so refuse any claims. You will need to rely on paypal for any problems.

vtc6

Boo. I'd hoped that this had been closed by now, it's really unfair to think that it's just like a credit card payment but it's not a credit card payment and you're not protected.

Just found this info on thisismoney.co.uk, dated end of 2013. The information is confusing. It says you have a claim if you can show the money went to Paypal specifically for the purchase... but that the card provider is not under any obligation (ie. you don't have a legal claim?).

What type of transactions aren’t covered?
Some types of purchases are not covered by chargeback, and eBay users should take note as this includes PayPal transactions.
In using PayPal, the actual act of loading the money into your account is considered to be the transaction.
This means the transaction is with PayPal, not with the seller you've bought a product from, so the first port of call to dispute a purchase in this case is to go through PayPal's complaints process.
You could potentially still make a chargeback claim against a PayPal purchase, if you can show you used your debit or credit card to specifically make the purchase through PayPal.
So if your PayPal account was empty and you paid in credit to make a transaction on that same day, then you may have a case for chargeback. But again, your card provider is under no obligation to provide a refund.


Read more: http://www.thisismoney.co.uk/money/guides/article-2523075/What-Christmas-purchases-wrong-How-chargeback-help-money-back.html#ixzz3vdQJtqWs

daytona0

The important thing to remember is that a chargeback will take money from Paypal. What have they done wrong? Usually not much, as your contract is strictly with the seller.

You could, however, probably take the seller to court. You also have the protection with Paypal (which is kind of substituting your chargeback rights).

All in all, I hate paypal with a passion. It is a nosey and greedy company which does not need to exist. They also placed stupid restrictions on my account about 5 years ago when I used them for personal use.

vtc6

Hey Daytona.

daytona0 wrote: »

The important thing to remember is that a chargeback will take money from Paypal. What have they done wrong? Usually not much, as your contract is strictly with the seller.

Paypal then take the money from the retailer. It's not much different from any other card payment provider. The retailer bears the brunt of this.

You also have the protection with Paypal (which is kind of substituting your chargeback rights).

Paypal protection has got better but it's still no way near as good. Short time limits for example. At one point it was a joke, foreign ebay sellers were advertising delivery periods that were longer than the eBay/Paypal time limits to make a claim!

All in all, I hate paypal with a passion. It is a nosey and greedy company which does not need to exist. They also placed stupid restrictions on my account about 5 years ago when I used them for personal use.

Basically that.


Chargebacks have saved me a few times. And they work internationally. So when a florist in France refused to refund an international order after they couldn't find the delivery address because it didn't show on sat navs. Or a US company who's systems went down after I subscribed and didn't answer email/phone. Both times I got my money back with no delay.

daytona0

vtc6 wrote: »

Hey Daytona.


Paypal then take the money from the retailer. It's not much different from any other card payment provider. The retailer bears the brunt of this.

Paypal don't necessarily have the legal right to just take money from another entity in regards to a contractual dispute between 2 third parties.

d123

vtc6 wrote: »

Paypal protection has got better but it's still no way near as good. Short time limits for example.

out of interest, what would you consider to be an acceptable time limit for claims if you think the current time limit is too short?

vtc6

d123 wrote: »

out of interest, what would you consider to be an acceptable time limit for claims if you think the current time limit is too short?

To be honest I don't even know what the time limits are now. They used to be silly short but I know that Paypal has made improvements and the last published time limits I saw looked far more reasonable. Still much shorter than the limits on chargebacks though.

I was using Paypal in the very early days of eBay, and back then they were a totally disgusting company, their only interest was making money, no concern at all for their customers. Since then they have gradually improved, but too slow and too little. I suspect they are improving just enough to avoid any serious publicity or litigation problems. Their entire business model is well thought out and to me oozes all the signs of a company that has no interest in it's customers, and no social interest.

d123

vtc6 wrote: »

To be honest I don't even know what the time limits are now. They used to be silly short but I know that Paypal has made improvements and the last published time limits I saw looked far more reasonable. Still much shorter than the limits on chargebacks though.

It was 45 days, it is now 180 days, it should be long enough for anyone to realise there is a problem.

wealdroam

vtc6 wrote: »

Chargebacks have saved me a few times. And they work internationally. So when a florist in France refused to refund an international order after they couldn't find the delivery address because it didn't show on sat navs. Or a US company who's systems went down after I subscribed and didn't answer email/phone. Both times I got my money back with no delay.

But in your current situation you gave Paypal some money and asked them to forward that money on to a third party. Paypal have done exactly what you asked them to do. Your card issuer has no right to perform a chargeback in this situation.

Exile_geordie

I find it strange you went straight to your CCC rather than using Paypals own claiming service.