Section 75 and payments through MyPos

aj9648

Hi

I have been in discussion with Amex re a S75 dispute for a holiday that I paid for.  I got a response today saying the below:

Claims made under Section 75 are subject to strict criteria, and to successfully claim, you must demonstrate either a misrepresentation of the sale or a breach of the contract that you are a party to. After reviewing the information provided, it has not been possible to uphold your claim for the following reason

• Both American Express transactions were completed through a third-party business (or aggregator), myPos. It is our understanding that myPos provides a service by acting as a mediator between the supplier of goods/services and the financial institution. This allows a business or an individual to accept payments without needing to enrol as a Merchant with a Merchant Acquirer (the financial institution, such as American Express, that manages a Merchant’s account to facilitate credit card payments).  
  
  American Express considers that the use of myPos breaks the link between the Creditor, the Debtor, and the Supplier, which in this instance is xyz company. This means that there is no clear contractual link between yourself (the Debtor), American Express (the Creditor) and xyz company      (the Supplier).

I wasnt aware of this and trying to understand what I can do next if anything ???

Okell

Put simply, for a s75 claim to succeed there must be an unbroken chain of transactions between the debtor (you), the creditor (American Express) and the supplier (whoever sold you the goods or services).

This means that when you pay by credit card, you need to be paying the supplier selling you the goods or services, and not a third party intermediary - otherwise you risk breaking that chain which is what AmEx are claiming has happened here.

born_again

https://www.mobiletransaction.org/mypos-review/

Seems to back up Amex view.

If they charge to withdraw funds. It puts them out there with the likes of Pay Pal.

Fees fairly transparent, but there are catches

In some regards, myPOS has simple fees. They have no monthly costs and seemingly “no hidden fees”, but if you buy into the service expecting to receive transactions into your bank account, you’ve got another think coming.

The transaction fee is 1.1% + 7p for consumer Visa, Mastercard, V Pay and Maestro cards issued in the UK or EEA, which is quite a good deal without a contract.

All American Express cards are 2.45% + 7p per transaction, and all other cards that are commercial, issued outside the EEA or of other card brands cost 2.85% + 7p per chip, tap and swipe transaction.

Bold line is the one that really backs up their view.

Clive_Woody

It's interesting that myPos has a "blog" talking about chargeback and S75, but it does seem that companies who use their service would avoid the risk of customers making an s75 claim as they would be rejected.

There was a recent(ish) article about PayPal, Apple pay and similar and how they also would not qualify for s75 protection.

aj9648

Is there nothing I can do then ?

la531983

aj9648 said:

Is there nothing I can do then ?

You could litigate against the holiday firm, of course. Small claims track.  Depends on the nature of the complaint I suppose.

born_again

aj9648 said:

Is there nothing I can do then ?

Depends on what the problem was with the holiday.

aj9648

la531983 said:

aj9648 said:

Is there nothing I can do then ?

You could litigate against the holiday firm, of course. Small claims track.  Depends on the nature of the complaint I suppose.

They have been dissolved 

aj9648

born_again said:

aj9648 said:

Is there nothing I can do then ?

Depends on what the problem was with the holiday.

Company failed to provide flights and the hotel that we booked for and then dissolved - could not get hold of them at all 

born_again

I take it that this is a long time ago as this is prime chargeback rights. No worries around 3rd party payments with them.

aj9648

born_again said:

I take it that this is a long time ago as this is prime chargeback rights. No worries around 3rd party payments with them.

Half of it was paid by credit card which chargeback has been established and corrected.  The other half by debit card hence the reason for a S75