CAUTION When Using Paypal and paying in Installments!

[AnkurJ]

Have a dispute with a seller (not on the boards) that I paid using paypal. It was for a custom order item and I paid half down and half when it was completed. So an issue happened and I had to file a paypal dispute. Paypal closed my dispute and did not find it in my favor, why? Because payment was split for the item, or it was paid in two installments.

 

So if you are buying a book on layaway from the boards, and an issue happens, paypal buyer protection is automatically VOID.

 

Just some food for thought.

 

UPDATE! I contacted my credit card company regarding the issue I had with the merchant. They said since paypal's terms of services says that any payment made in multiple installments will not be covered under buyer protection, THEY WILL NOT BE ABLE TO DISPUTE THE CHARGE.

 

That is correct, THE CREDIT CARD COMPANY CAN'T DISPUTE A MULTIPLE PAYMENT CHARGE BECAUSE OF PAYPAL'S TERMS!

 

FRANKLY FOR ME, ALL INSTALLMENTS WILL NOW ONLY BE WITH PEOPLE I KNOW AND VIA CHECK.

[musicmeta]

Good to know and that is terrible losing half of your money.

[Chip Cataldo]

How would Paypal know the payment was supposed to be one of two/several payments?

[roulette44]

Yeah, that's terrible. Can you give us more details of what happened, Ankur?

[shadroch]

Have a dispute with a seller (not on the boards) that I paid using paypal. It was for a custom order item and I paid half down and half when it was completed. So an issue happened and I had to file a paypal dispute. Paypal closed my dispute and did not find it in my favor, why? Because payment was split for the item, or it was paid in two installments.

 

So if you are buying a book on layaway from the boards, and an issue happens, paypal buyer protection is automatically VOID.

 

Just some food for thought.

 

Ankur

 

Wouldn't using Paypal Credit be the same as paying on installments, only with Paypals full protection?

[ebtorres]

That's interesting; thanks.

[wombat]

How would Paypal know the payment was supposed to be one of two/several payments?

 

I'm guessing they could tell from descriptions you sent with your payments or even take email documentation.

[Darjis_]

what about when ebay offers you the "...or $50 for 6 months" thing?

[oldbsturgeon]

That you are fully protected on and will get your full money back even if you have paid on it

[Gsims718]

I thought they where changing that rule.

[Gsims718]

Guess not, it's still on their rules.

 

Dumb rule.

 

https://cms.paypal.com/il/cgi-bin/?&cmd=_render-content&content_ID=ua/UserAgreement_full

 

7.2 Eligibility Requirements.

 

To be eligible for PayPal Buyer Protection you must meet all of the following requirements:

Pay for the full amount of the item with one payment from your Account. Items purchased with multiple payments or installments are not eligible.

[BarryAllen]

Thanks for the head's up and I am really sorry it happened to you.

 

Great information - moving forward I will only enter into time-payments (on either side) with someone I really trust.

 

Bummer for PayPal, especially since they offer their own line of credit (which is advertised to enable "time payments").

[Bird]

It is a good rule. Partial payments means that additional terms have been negotiated between the two parties; paypal cannot be reasonably expected to mediate partial payments problems. When they offer the credit they control the terms, much different.

[Columbia Comics]

This isn't entirely true but it would appear in this case you're going to miss out.

 

UNLESS you paid via credit card. At that point, I would do a chargeback through your credit card company and they'll side with you.

 

 

Whoever this seller is did you a major disservice b/c there is an option to do payment plans via PayPal. You just have to establish it up front.

 

I've never used it and I discourage payment plans via PayPal but there is an option when using the invoicing feature to allow a partial payment. Then you have to pay a minimum (established by the seller), then you can pay it off at a later date. I'm not familiar with the details but the option is there.

 

If anything, ALWAYS use a credit card when buying via PayPal, even if you create a credit that that you only use for PayPal.

 

The credit card companies work for you....PayPal does not.

[Bird]

+1

[shadroch]

Why discourage time payments via Paypal?

[Columbia Comics]

Why discourage time payments via Paypal?

 

As a seller, PayPal is designed for one payment, one item.

 

When you sell an item, you're asked to upload tracking information for said item. If you accept two payments for the same item, how many tracking numbers will you have for that item: one

 

The buyer can dispute one of the payments and you'll automatically lose.

 

That's why I discourage time payments via PayPal.

 

 

[shadroch]

I'm confused. If I buy a book using pay pal six monthly payments, doesn't the seller get paid upfront and the debt is to PayPal, not the seller.

[oldbsturgeon]

yep this is correct

[Doktor]

I'm confused. If I buy a book using pay pal six monthly payments, doesn't the seller get paid upfront and the debt is to PayPal, not the seller.

 

I think this is a confusion between using Paypal Credit (formerly BillMeLater) and setting up time payments with a seller. Using PayPal Credit would essentially be the independent 3rd party handling the time payment guarantee for the seller, and giving you "credit". While setting up time payments directly with the seller would essentially circumventing the independent 3rd party part of the agreement.

 

Paypal wants you to use Paypal Credit for any time-payment arrangement (and the seller probably does too, since it gets them paid for the whole thing at once) and discourages you from entering any sort of other arrangement with a seller that uses paypal as the payment processor by eliminating buyer protection.