Paying by PayPal vs using your credit card on PayPal?

techno79

I just read this article (http://www.moneysavingexpert.com/news/cards/2017/04/revealed-section-75-credit-card-protection-may-fail-due-to-payment-processing-loophole---shoppers-beware?utm_source=MSE_Newsletter&utm_medium=email&utm_term=25-Apr-17-33563917&utm_campaign=nt-oneliners-one&utm_content=7) and I wanted to get clarification.

When you enter your credit card details on a website, they will use some third party company to take those payment details and charge the transaction (I think this is called card payment gateway, or something like that). There are many companies that do this, which includes PayPal. This is nothing to do with using your PayPal balance, it is simply PayPal handling the credit card payment details. As I understand it, this would be fully covered by section 75 because what PayPal are doing here is no different to any other payment gateway.

What I think would fall foul of section 75 rules is where you use PayPal balance to pay for something (even if the funds are credited into PayPal via a credit card). This is because PayPal is an intermediary.

Can anyone clarify if my understanding is correct or not?

TIA

Chrysalis

correct, you wouldnt get the credit protection if paying using paypal funds.

eskbanker

While you're right that there's a big difference between a consumer choosing to use a PayPal balance versus a merchant using PayPal as a payment processor, that article suggested that both methods can fall foul of s75, rather than just the former.

Subsequently discussed in this thread but a definitive position seems difficult to determine....

cjv

This has raised a question in regards to my own PayPal account. I recently applied and got accepted for PayPal credit to take advantage of a 24 month interest free promo from Samsung.

Does anyone know if my purchase from Samsung using PayPal credit is protected by section 75?

I will have to dig around and try and find the terms and conditions. It did not even occur to me at the time of purchase.

boo_star

cjv wrote: »

This has raised a question in regards to my own PayPal account. I recently applied and got accepted for PayPal credit to take advantage of a 24 month interest free promo from Samsung.

Does anyone know if my purchase from Samsung using PayPal credit is protected by section 75?

I will have to dig around and try and find the terms and conditions. It did not even occur to me at the time of purchase.

Yes, there's a clear debtor-creditor-supplier relationship. It's entirely different to using a card via PayPal.