Sec. 75 with eBay

18cc

Thanks TT that is interesting and I have not heard of that before i e that you pay by credit card and behind the scenes and unknown to you you are actually paying PayPal and then PayPal pay the Merchant...


How would you ever know if that was happening and that you had S75 protection...

Terry_Towelling

I have just read the T&Cs linked in to the opening post.

They do seem to say that PayPal will only pay funds to the retailer when they have received payment from the CC transaction. In that sense, the payment flow is different to that of a standard credit card transaction and perhaps the Ombudsman's view has some merit - but it also makes it clear that there are pre-existing arrangements covering the whole process and the debtor-creditor-supplier chain is not broken but merely subject to an extra layer of intermediation than a standard credit card transaction.

PayPal also says that paying without a PayPal account confers on the payer none of the rights or protections afforded to PayPal account holders but that payers may have rights available through their card issuer. Doesn't sound like that that holds much water now.

I still think it's worth challenging the Ombudsman's opinion - after all, wasn't it a previous Ombudsman who opined that S75 could not apply to overseas transactions?

gt94sss2

Terry_Towelling wrote: »

I still thinks it's worth challenging the Ombudsman's opinion

I would agree with this.

I haven't read the T&C but for those who don't know, when you buy something from eBay, you can either:

a) use a PayPal account in which case Section 75 doesn't apply; or

b) pay directly using your debit/credit card, using PayPal as the processing platform - to the consumer it would appear the same as if another retailer was using WorldPay to process their payments.

I would argue that in the second case, there is a strong argument for Section 75 to apply.

I also suspect most pay using option a) hence the default reaction of a financial institution when they hear Paypal and Section 75..

I also don't know how easy it is to tell the two types of transaction apart on a statement..

gt94sss2

Just doing some quick research on the back of my previous post:

Which's view:

Payments through PayPal

There are legal arguments that having another party involved in the transaction process takes away the Section 75 protection.

However, if you use your credit card to pay for something through PayPal and the funds go direct to the seller, then as long as the company you're buying from has a 'Commercial Entity Agreement' with PayPal you may still be able to claim against your credit card company under Section 75 for any misrepresentation or breach of contract by the seller.

A quick scan of PayPal's Commercial Entity Agreement suggests it covers firms with PayPal Business accounts.

18cc

Thanks that is also very interesting information well if I paid for something online with a credit card I would certainly expect to have section 75 protection and I don't care if the underlying paying is done by WorldPay, PayPal or anybody else - to me that doesn't matter.

eco_warrior

18cc - You are making an assumption when it comes to S75 protection. There are many limitations but they aren’t openly known.

18cc

I have checked some recent credit card statements where I have paid online via WorldPay and it shows up on my statement as the name of the Merchant not worldpay so I am wondering why the name of the merchant in the OP case was PayPal