According to Martin Lewis, an expert in saving money, anyone using the popular PayPal payment service may not be as safe as they think they are.
Martin provided advice to people using the app, commonly used for online money transfer alongside purchases on sites like eBay, during his televised Money Show after a viewer asked about payments for Apple Pay protection.
Martin said that while Apple Pay provides your protection, PayPal may not.
The viewer said, “I recently started using Apple Pay for purchases above the contactless limit, but I am concerned that I may not have Section 75 protection.”
Martin said, “Apple Pay is just another way to use your card. It’s practically like using the card. You still get Section 75 protection, which makes the credit card company joint and several if you buy something that costs over £ 100 but less than £ 30,000. “
But he said it wasn’t the same with PayPal, he said Daily record.
Martin warned, “Sometimes you don’t get this protection with your credit card through PayPal, but most of the time with Apple Pay.”
The PayPal website states that the Buyer Protection Program gives you a refund of the full purchase price of an item plus the original shipping costs that you may have paid if you did not receive it from a seller or if you received an item but the item is not what you ordered.
Regardless of how you pay for your purchases, there are two money-back systems in the UK that can be used to get a refund through your bank, building society or credit card issuer.
The first is Section 75 of the Consumer Credit Act 1974, which Martin explained provides legal protection for credit card users with purchases of more than £ 100 and less than £ 30,000. This means that if a sale fails, your card issuer is jointly responsible.
The second of these protective measures is the chargeback, which covers all card payments via banks and building societies.
While this isn’t a direct consumer law, if you can’t resolve a dispute with a company, you can reverse a transaction.