PayPal customers should be covered by the same consumer protections they receive when using other forms of payment, according to Which?
Although PayPal offers its own user protection for customers who receive fake and faulty goods, or goods that don’t arrive as expected or arrive at all, users do not have the same protections offered to them by other financial services.
The consumer group pointed out that PayPal is not part of the voluntary code which reimburse victims of authorised push payment (APP) scams.
Many banks are now signed up to the code, and have committed to reimbursing blameless customers who have been tricked into transferring money to scammers.
However Which? reported that it has dealt with PayPal customers who are struggling to get their money back from such instances.
A PayPal customer told Which? he had problems when he tried to get reimbursed after paying £800 when attempting to book a holiday home.
After sending the money, the hosts disappeared and the customer realised he had been scammed.
Which? said PayPal told it that it would not refund him under its buyer protection as he authorised payment using the “friend or family member” option.
But Which? said if he had paid directly from his bank account, he could have got his money back through the banking industry’s voluntary APP code.
“Consumers should feel confident that their money is protected however they choose to make a payment,” Which? Magazine editor Harry Rose said.
Which? argues that the bank transfer scams code should be mandatory across all banking institutions, including payment platforms such as PayPal.
The calls for better consumer protection come days after online shoppers were warned by GCHQ to “be on their guard” this Christmas after scammers swindled customers out of millions last year.
The National Cyber Security Centre has launched a TV advertising campaign, backed by organisations including Microsoft, Vodafone, BT, ASOS and Barclays, urging online shoppers to remain cautious of the increasing number of online scammers.
According to the National Fraud Intelligence Bureau shoppers lost a total of £13.5 million between November 1 2019 and January 31 2020, with more than 17,000 cases reported.
with PA Wires