Consumer title claims PayPal is not secure and offers its users no power in disputes

News by Dan Raywood

PayPal has been criticised for giving online shoppers a 'false sense of security'.

PayPal has been criticised for giving online shoppers a ‘false sense of security'.

What Consumer founder Catriona Bright claimed that PayPal ‘has a tendency to frustrate both buyers and sellers by closing disputes for reasons only known to them. Additionally, their Protection for Buyers imposes over-restrictive time limits, has significant exclusions and has some major limitations'.


Bright claimed that to be eligible for PayPal Protection for Buyers, users must start the dispute process within 45 days of payment being sent and to escalate this, it must be done within 20 days of raising the dispute, which she claimed is ‘not adequate'.


Further, Bright claimed that products are not always automatically covered under PayPal's Protection for Buyers, and the Buyer Complaint Policy has two significant limitations.


Bright said: “PayPal will not make a decision on whether an item is ‘not as described'. For example, if you buy a new book and it turns out to be used or is damaged, you can use the process to make a dispute, but you are on your own. PayPal will not get involved nor make a decision either way.


“Second, for items that are not delivered PayPal will only refund your money if they can recover this from the seller. Fraudsters know this and are likely to withdraw your money as soon as they get it.”


Also, Bright claimed that credit card users are not covered by the Consumer Credit Act.


Rob Skinner, head of PR for PayPal UK, claimed that the main benefit of PayPal is that it does not share the user's financial details with anyone that they buy and sell from.

Skinner said: “The buyer protection we offer for free is on top of the existing benefits. The main reason our customers choose PayPal is because we securely store their financial details so they can use it over and over again, so we disagree with the comment that it is unsecure.



“We have taken the time to explain to our customers how it works and how it benefits them, we're always looking at ways to improve communications with our customers and the benefits we offer as well.”



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