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Old 03-04-2010, 08:46 AM   #53
Fearsome Forehand
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Join Date: Aug 2007
Location: USA
Posts: 1,183

Originally Posted by porchdoor View Post
I was curious, why is this so? What makes credit card more secure rather than using your bank account?
Primarily because your cc issuer is more likely to help you out than PP.

PP makes arbitrary decisions based on their thousand if this, then that, rules. If everything goes well, no problem, but if the transaction has any problems, look out.

PP could care less about whether you received your stuff, or not. They take care of PP first and if you happen to benefit as well that is nice. PP won't take a loss on any dispute regarding a tennis racket. Either the buyer or the seller will cover the loss, not PP. PP eats a lot of money (as do cc companies) due to sophisticated fraud schemes but not on $100 tennis racket deals between private parties.

Using your cc doesn't protect your completely. For instance, if you do a credit card chargeback, PP will often re-bill the charge the following month and then you have to go through a whole thing with your CC issuer to justify your chargeback. Even if your cc provider ultimately decides in your favor post rebill, PP may restrict your account if they decide the cc chargeback was invalid for any reason. It doesn't matter if you've done a zillion PP transactions before and had only one chargeback. If PP decides your chargeback is invalid, end of story, regardless of what actually occurred. In example, if tracking indicates a item was delivered, even without a signature, you are SOL with PP if you file a did not receive claim if you never received the item. (PP's assumption is UPS or USPS never makes a delivery error; hardly the case.) If you are unfortunate enough to be the victim of such an error, guess what, you get to pay for the item regardless unless you want your PP account to be forever restricted and all but unusable. PP takes care of PP, not you. Even if your cc issuer grants a chargeback, if PP doesn't agree the chargeback is valid, PP will put restrictions on your account in order to to force you to reimburse PP for the amount of the chargeback; a bit like blackmail.

In short, whenever you use PP, you become subject to PP's whims in the event of a problem; right and wrong has little to do with it. It is like dealing with the IRS or PP's owner, fleabay. PP has absolute power and short of taking them to small claims court, you have no recourse if PP rules against your claim.

Refer to sites like and for hundreds of horror stories from people who have been screwed over by Paypal. Despite all the noise PP makes about buyer and seller protections, don't ever assume PP will protect your interests if you experience a problem. Sometimes they do, sometimes they don't; a total crap shoot in my experience.

Please consult with your attorney before using PP:

Last edited by Fearsome Forehand; 08-08-2012 at 09:25 AM.
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