Does PayPal credit give you extra rights?

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Posted 28th Dec 2019
So PayPal is great for buyers rights anyway, but with their credit option do we also get the usual protections that come with a credit card?
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I am curious why you think paypal is great for buyers rights?
Credit consumer rights are applicable when in a tri party arrangement - I.e. the credit card is part liable as is the seller when there is only three in that arrangement (buyer, seller, credit).
The biggest decline by the ombudsmen in disputes with credit card claims is when that 3 party arrangement is breached - i.e. paying another party who the credit card company pays and in turns pays the seller bringing a fourth party into the equation.
Edited by: "Bertz99" 28th Dec 2019
Bertz9928/12/2019 13:18

I am curious why you think paypal is great for buyers rights?Credit …I am curious why you think paypal is great for buyers rights?Credit consumer rights are applicable when in a tri party arrangement - I.e. the credit card is part liable as is the seller when there is only three in that arrangement (buyer, seller, credit).The biggest decline by the ombudsmen in disputes with credit card claims is when that 3 party arrangement is breached - i.e. paying another party who the credit card company pays and in turns pays the seller bringing a fourth party into the equation.


PayPal claims are usually very good for getting money back - that's why I feel they are good for buyers rights.
ArcAndPie28/12/2019 13:21

PayPal claims are usually very good for getting money back - that's why I …PayPal claims are usually very good for getting money back - that's why I feel they are good for buyers rights.



As above I just gave an example that if you pay paypal via your credit card you have infact limited your rights and place onus under the terms Paypal offer. There be a distinction between the two.

Paypal being both of course keeps tri agreement inplace. You clearly have more faith in paypal than I would place with them.
Bertz9928/12/2019 13:28

As above I just gave an example that if you pay paypal via your credit …As above I just gave an example that if you pay paypal via your credit card you have infact limited your rights and place onus under the terms Paypal offer. There be a distinction between the two.Paypal being both of course keeps tri agreement inplace. You clearly have more faith in paypal than I would place with them.


I'm talking about PayPal Credit , not using a credit card on paypal.
ArcAndPie28/12/2019 13:30

I'm talking about PayPal Credit , not using a credit card on paypal.



I know but by first starting with the premise "So PayPal is great for buyers rights anyway" which is clearly false.

Here is an article discussing how your starting position is flawed (although get I am being a little too precise for you):

goodhousekeeping.com/uk/…ng/
I have to say I actively avoid using PayPal wherever possible as they seem to either be amazing at dealing with issues, or, dire. There doesnt seem to be an in the middle. As @Bertz99 said you actually lose a lot of rights by using PayPal (note: same goes I imagine for services like Curve) and they give additional ones to try and compensate that. However, I've never quite found them as good as what I'd get direct.


I cant remember what it was I had an issue with but I only discovered the above when PayPal wouldnt help so I went to my card company (FirstDirect) who looked in to it for me and said they were not liable etc. etc. but "as I was a good customer would refund anyway". They then sent me a long letter with the reasons why they were not liable, and basically, not to use PayPal (yes, I know, its in their interests to go direct..... but!). Was very interesting.
markmc99928/12/2019 13:59

...They then sent me a long letter with the reasons why they were not …...They then sent me a long letter with the reasons why they were not liable, and basically, not to use PayPal (yes, I know, its in their interests to go direct..... but!)...


FirstDirect sent you a letter with reasons & advise you not to use PayPal?

If so, what did you mean by "...its in their interests to go direct"?

That seems contradictory to your previous statement.
Its in their interests (for the fees they charge) to go direct to supplier using card with retailer as I'd imagine the charges charged to PayPal are much less than a lot of other stores - plus they can deal with customer queries, and keep us happy, without saying 'actually go away' etc. which leaves a bitter taste.
I'm surprised by the few comments that dislike paypal. They've always been good to me personally!
ArcAndPie28/12/2019 15:17

I'm surprised by the few comments that dislike paypal. They've always been …I'm surprised by the few comments that dislike paypal. They've always been good to me personally!


The usual reservation about the standard consumer PP account (rather than PPC) is that the user agreement requires the customer to agree that PP has the final say on what is defined as PP buyer protection, which means if PP disagrees with the buyer's protection claim then the buyer (customer) is reasonably stuffed with no (easy) financial recourse. Compare to a CCA 1974 S75 claim where qualifying protection is statute and can be reasonably simply enforced.
ArcAndPie28/12/2019 15:17

Does PayPal credit give you extra rights?


To answer the question in the context of your thread title: no extra rights that I can see, although a PPC purchase may qualify for whatever protection that PP deems fit for a PP-funded purchase.
As regards CCA 1974 S75: a historical PPC agreement circa 2017 stated:
"...10.3. Section 75 of the Consumer Credit Act 1974 means that if you use your Credit Account to purchase an item that costs between £100 and £30,000, you may have the ability to bring a claim against us as well as the Merchant if the Merchant breaches their contract with you or the goods or services do not match the Merchant’s description..."
No idea if that phrase is (still) included in the current PPC agreement, and PP won't show you its current agreement unless you apply for the product and agree to and surpass its hard credit check (no thanks). And you might want to consider PPs S75 escape options when PP reminds you that the quoted phrase includes the word "may" (not "will"), especially if the PPC funds are dropped into your PP account and you then use your PP account funds to make a purchase.
AndyRoyd28/12/2019 22:17

To answer the question in the context of your thread title: no extra …To answer the question in the context of your thread title: no extra rights that I can see, although a PPC purchase may qualify for whatever protection that PP deems fit for a PP-funded purchase. As regards CCA 1974 S75: a historical PPC agreement circa 2017 stated:"...10.3. Section 75 of the Consumer Credit Act 1974 means that if you use your Credit Account to purchase an item that costs between £100 and £30,000, you may have the ability to bring a claim against us as well as the Merchant if the Merchant breaches their contract with you or the goods or services do not match the Merchant’s description..."No idea if that phrase is (still) included in the current PPC agreement, and PP won't show you its current agreement unless you apply for the product and agree to and surpass its hard credit check (no thanks). And you might want to consider PPs S75 escape options when PP reminds you that the quoted phrase includes the word "may" (not "will"), especially if the PPC funds are dropped into your PP account and you then use your PP account funds to make a purchase.


Thanks for the insight and advice, very helpful
I actually use PayPal, usually for not too expensive stuff, on websites that offer it. With all the hacking and data breaches going on, it is easier to cut off PayPal if there is a problem than deal with multiple sites. Same reason to use Google Pay whenever possible.
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