Argos to accept PayPal payments onlineLower protection than paying by credit card
24 January 2011
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.
Which? debt, credit and loans surgery
Which? Money is running an online debt, credit and loans surgery between 12pm and 1.30pm on Monday 31 January, when you can ask our panel of experts all your credit and debt questions.
Whether you're looking for the best credit card to use abroad, hunting for the best personal loan, want to ask about credit card protection or need independent help in finding the best debt advice service, sign up now for an email reminder and join us on the day with all your questions.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.