Argos.co.uk customers can now pay for their shopping using PayPal, but should be aware of reduced protection.
The move by the two companies is potentially very lucrative for both sides: in the last financial year, Argos sales were £4.3 billion and it estimates that around two thirds of the UK population have an Argos catalogue at home. PayPal, meanwhile, is the biggest online payment method in the UK.
Convenience but with reduced protection
Which? Principal Researcher Martyn Saville commented: ‘PayPal offers a convenient way to pay for online goods without revealing your card details to the retailer. This tie-up between PayPal and Argos gives consumers an extra payment option.
‘However, the extra protection that consumers have under Section 75 of the Consumer Credit Act for items costing over £100 does not apply to PayPal payments. The Visa, MasterCard and American Express chargeback schemes should apply in most cases, but not if you use an existing credit balance in your PayPal account to pay for new shopping. PayPal does have its own protection system, but the coverage is more restrictive, as are the time limits that apply.’
For more details, read the free Which? guides to your rights when shopping online, and how to claim on your credit card when something goes wrong.
Also, read our news story to find out What’s new in the latest Argos catalogue.
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