Using Credit Card with Paypal

Credit card Insurance? Usually it's a scam and won't cover anything like that, even if you do everything 100% legit.

However without any insurance, most of the better issuers will help you out if you order stuff and don't receive an item/cerise paid for. And for those good issuers, it really doesn't matter where or how you bought the item, so yes using that option is fine.

You simply make a dispute with your issuer and explain the situation.

If it's a small amount, and it's american express, they will just give you the money no questions asked in most cases, especially if you've been a member a while and haven't done any previous disputes.

Other decent issuers like TD/BMO/CIBC will do a small investigation, contact the merchant for some proof of delivery, give them a month or so, but in most cases will side with you and refund the amount (debit-ting the issuer). Crappier issuers, they'll just tell you no, they only do disputes for fraud.

Paypal faces charge backs all the time, ones from banks they can't do anything about but try to get the money back from whoever got disputed. What they do is debit the seller, even if it set's their balance negative, and even if they did it as a "friends" transaction.

The other difference is you don't get buyer protection, the seller doesn't get seller protection if you do it that way. Keep in mind anyone, even ppl with a basic personal account can send you a item invoice, and thus act as a merchant - in this case you pay no credit card fee - they pay it. So that's usually the best option, since that way you get both paypal and your credit cards protection.

In general paypal protection also favors the buyer, not the seller. Though the paypal dispute system sucks, very slow and ultimately they don't have control since like I said, banks can force the refund/credit regardless.

Friends and family is meant to transfer money to friends and family, not for making purchases. Paypal is charging you a fee because you are using a debit or credit card and/or the person you are transferring funds to is outside of Canada. If you fund it from your bank account and the recipient is in Canada, there is no fee.

If you use your credit card to pay to a legit business like Bestbuy or eBay, your credit card or Paypal (in the case of eBay) will cover you. I've had an eBay seller ship me a product not as described and I was refunded my money.

If you use friends and family, there is no recourse so don't use it unless you know the person you are sending the funds to.

Eleventeen wrote: ↑ Credit card Insurance? Usually it's a scam and won't cover anything like that, even if you do everything 100% legit.

So, you say that they are a scam but with decent companies like AMEX or TD/BMO/CIBC, it worth it.

Eleventeen wrote: ↑ The other difference is you don't get buyer protection, the seller doesn't get seller protection if you do it that way. Keep in mind anyone, even ppl with a basic personal account can send you a item invoice, and thus act as a merchant - in this case you pay no credit card fee - they pay it. So that's usually the best option, since that way you get both paypal and your credit cards protection.
In general paypal protection also favors the buyer, not the seller. Though the paypal dispute system sucks, very slow and ultimately they don't have control since like I said, banks can force the refund/credit regardless.

Yes, but because of all of that, many sellers want to use the family and friend optios. Many buyers abuse and sellers are unprotected.
If I use Family and Friend I don't care about Paypal, but I would want to be covered by my credit card.

batcave wrote: ↑ If you fund it from your bank account and the recipient is in Canada, there is no fee.

I know that, I have used Paypal hundred of times. That was not the question.

batcave wrote: ↑ If you use your credit card to pay to a legit business like Bestbuy or eBay, your credit card or Paypal (in the case of eBay) will cover you. I've had an eBay seller ship me a product not as described and I was refunded my money.
If you use friends and family, there is no recourse so don't use it unless you know the person you are sending the funds to.

If you sell to me your necklace, you are not my friend, neither my family neither a "legit business" and that is the issue.
Of course I won't use Family and Friend with the first guy I find in Kijiji but there are many forums where you can read comments and feedback about everyone.
If you send me the necklace as a business transaction, I can argue whatever and as the previous reply, Paypal most likely would side with me.
Sellers prefer Family and Friends for that reason.

I know an event, where they used the business transaction (fee) through Paypal for a gold coin. It was sent tracked and the buyer argued he never received it.
Seller showed to Paypal the tracking info that item was received and that is the proof. Buyer said that yes, I received the envelope but there was an empy box inside, without the coin so I didn't receive the item I paid for. As the seller couldn't prove that the buyer received the coin, Paypal sided with the buyer.