warns about using credit cards with PayPal

Personal finance guru Martin Lewis of 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.

You can read the whole article here.

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.