Moneysavingexpert.com warns about using credit cards with PayPal
Personal finance guru Martin Lewis of moneysavingexpert.com has issued a warning to his millions of readers about potential problems when it comes to paying by Paypal using your credit card.
The headline reads: “Warning! Don’t use PayPal to pay on a credit card” and adds: “You’re losing valuable Section 75 rights.”
His concern centres around what are termed Section 75 rights. The article explores the problem in detail but here’s the short version: “Section 75 of the Consumer Credit Act 1974 says if you pay for something costing between £100 and £30,000, specifically on a credit card, the card company is jointly liable with the retailer.”
Section 75 is a valuable consumer protection mechanism that doesn’t protect you if you pay with PayPal.
Of course, to seasoned ecommerce SMEs, there’s nothing new here. We’ve known this for some time. But I wonder if it may have a detrimental impact on eBay traders if it does dent confidence in PayPal because such a venerable consumer champion has highlighted the issue.