posted on August 2, 2001 12:53:42 PM
It seems to me that someone could be questioning the legality of chargebacks to PayPal.
Technically, the person used their credit card to "buy" from PayPal, Paypal funds or currency ("PayPalBucks". This PayPal currency was then given to the seller by the buyer. It seems that if the person bought the "PayPalBucks" from PayPal and actually received the "PayPalBucks" then they have no legitimate complaint for a credit card chargeback. They got what they paid for.
Now if there is a problem with the merchandise bought with "PayPalBucks" then their complaint is with the seller via PayPal AND NOT through their credit card company.
Think of it as buying a gift certificate at a mall (one good at any mall merchant). If a person uses the mall gift certificate (bought with a credit card) at a bookstore and then has a problem with the book they bought, the problem isn't with their credit card company (since they DID receive the gift certificate they paid for), the problem would be with the merchant involved and indirectly the mall itself who sold the gift certificate.
posted on August 2, 2001 02:22:39 PM
This one has been asked and answered. If the buyer were buying "paypalbucks," then it would be a cash advance and buyers would be charged interest and fees from day one. To avoid that, it is treated as a puchase and therefore subject to all purchase rules, including charge backs.
posted on August 2, 2001 04:44:04 PM
I think the idea is right with the wrong elements. I don't consider PayPal an online currency, but there are some definite issues coming about because PayPal is the merchant of record and yet maintains it is not an agent in the transaction...
Also, I am not sure I agree on the idea that an online currency is automatically regarded as a cash advance. Flooz, WebCertificate, eGold do not seem to be regarded this way. Actually, whether it is processed as a purchase or not, the bank or card issuer could still peg it as a cash advance. Isn't this just what MBNA did with PayPal?
posted on August 2, 2001 05:03:15 PM
Efveryone will piss and moan and complain about charge back and buyer will fraud sellers paypal and credit card companies untill they make each third party credit card transaction a cash advance and buyer is charge cash advance fees and there is no charge privillages or protection at all.
. This PayPal currency was then given to the seller by the buyer. It seems that if the person bought the "PayPalBucks" from PayPal and actually received the "PayPalBucks" then they have no legitimate complaint for a credit card chargeback. They got what they paid for.