Credit Card vs. Paypal

Last Nov. I paid over $500 for a deposit on a product being produced for magicians (I won't go into who/what it was but if you have read any of my recent posts you will know who I am dealing with). I paid this deposit with a major credit card.

Then when the product was supposedly finished about 6 months later I paid the balance in full (another payment of just over $500) but this time I paid with Paypal. (big mistake) Well the product never showed up and I ended up asking for my money back however the company I was dealing with did not get back to me as they promised and made up a lot of excuses as to why they could not pay me back quite yet, they kept stalling and buying more time when I did get ahold of them.

Soooo, I declined charges on both my CC and Paypal about 6 weeks after my second payment (the one I made through Paypal). Short story, even though it was over 6 months old, my CC company backed me up and declined the charges. Paypal however said "sorry it has been over 45 days since the charge was applied" and thus will not dispute the charges.

Moral of the story: Always make payments with a CC and not with Paypal whenever possible.
: )

Or better yet, if you haven't received your goods in 30 days, put in a complaint then.

I concur--paying with a credit card gives you better/stronger recourse if you get screwed. And bear in mind that if you use your credit card through PayPal, it's still deemed a PayPal payment, and your credit card lender may not be willing to step in and fight your battle.

Also, IMO American Express has the strongest buyer protection/recourse policies and practices, and for that reason I use AMEX whenever possible.

Good to know!

Phil, I agree with your suggestion but here is what happens in many cases (and did in my situation). The vendor keeps stalling you and saying it is almost ready and that there is no need to be concerned. "Just working out a few bugs etc and then we will have it off to you soon" they say. 45 days goes by a lot faster than you think in this kind of situation, you want to be cordial and work with them so you just ride it out. As Christopher and I have discussed in the past, people in magic circles seem to be very good at these kind of business tactics.

Again, I agree with you Phil. Just letting you know the trap that can be laid down for you if you have paid by Paypal. If you have a good CC company you are protected in these situations.

PS I have a Chase Visa card and they made it very easy to decline the charge. I just called them and they said OK we will take that charge off for you. Done!

Keir is also touching on something important about customer service.

How you treat your customers is related to the issue of "trust." Quickness in fulfilling your promises, communication, excuses, etc.

I think that some people actually paid 100% in advance for that item. Even a deposit, with a 6+ month delay (without advance warning), is outrageous. Customers should have been sent a refund (the company, not the customers, should have insisted on a refund), and then contacted when the product was really ready.

It is a shame when you have to ask for a refund, and they are slow to give it back, or don't give it back at all. The customer should have never had to request that in the first place.

- Donald

Another thing to consider about paypal, as I start to get money back if they paypal it to me I will now pay the 3% fee on over $500. So I paid the company approx. $500 and they paid the fee, now they are refunding my money and I am paying the fee. Paypal is making a fair amount of money for doing nothing more than refunding my original amount. With my CC, no charge!

I avoid paypal like the plague. The company is based on a terrible business model. Google Pay pal stinks to find out more.

People with good credit should avoid both debit cards and PayPal.

People who only deal with payments through PayPal systematically eliminate the best of prospects. "Sub-prime" has REAL meaning.

Bob Sanders
Magic By Sander