Section 75 and PayPal
PayPal
Under Section 75 of the Consumer Credit Act, if you make a total or partial payment of between £100 and £30,000 by credit card and the item isn’t delivered or there’s something wrong with it, you can make a claim against the retailer or your credit card provider. This means, if you pay a £200 deposit on your credit card for an item costing £5,000 and the item is not as described (misrepresented) then you may be able to claim the full £5,000 from your credit card company, if the retailer will not resolve the situation.
The major exception to this is if you pay for an item using a service such as PayPal or Google Checkout, Section 75 does not apply. PayPal acts as an intermediary and you are effectively funding your PayPal account with your credit card, then using those funds to purchase an item. As the payment does not go directly from the credit card company to the retailer, you lose your rights under Section 75.
If you have the option of paying a retailer directly or via a service such as PayPal, always go direct.