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Paying by PayPal vs using your credit card on PayPal?

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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

Comments

  • Chrysalis
    Chrysalis Posts: 4,701 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    correct, you wouldnt get the credit protection if paying using paypal funds.
  • eskbanker
    eskbanker Posts: 36,948 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    cjv Posts: 513 Forumite
    Third Anniversary 100 Posts Name Dropper Newshound!
    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
    boo_star Posts: 3,202 Forumite
    Part of the Furniture 1,000 Posts
    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.
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