BBC are running a story on news broadcasts regarding a Which? report on PayPal claiming, although consumers are fully covered for purchases on eBay, when buying off eBay you’re purchase is only protected if you pay by credit card.
Martyn Saville from Which? said if you’re buying outside of eBay your protection is inadequate “we think”. The broadcast explained that if you pay for a purchase using a credit card you’re full covered for claims between £100 and £30,000. Items purchased on eBay are fully protected, however if you make payments off eBay using PayPal “recovery of your claim is not guaranteed”. When purchasing items such as airline flight tickets or non-tangible items like downloadable music there is no cover with PayPal.
Carl-Olav Scheible, head of PayPal explained that PayPal does have benefits over and above credit cards and many buyers are concerned about identity theft – PayPal protects them by keeping their personal details and bank/card details hidden from suppliers. Convenience and security are the reasons he gave for people using PayPal.
I have to say I tend to side with PayPal, it’s very rare that I’ve not received goods, or received them not as described… but I am lazy! If I get the choice to pay by logging into PayPal, rather than fill out address, email, card, telephone details etc, I’ll always choose the easy option.