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As per my understanding: When paying a store directly with my credit card, I am "protected" against items not as described, or not received...Possibly other situations as well. If approved, this would result in a refund of my purchase that the store has to pay (in addition to a fee of some sort they must pay).

But what if I pay the store with Paypal/Google-Pay/or similar, using my credit card as the source of funds (not a Paypal balance)? In that case, would I still call my credit card company for a chargeback, or would I have to go through Paypal, which I imagine has a totally different set of rules (Paypal claim)? Perhaps I'm protect by both?

Update: Paypal's website states the following:

Chargebacks: When buyers file a complaint with their credit/debit card issuer.
Rather than filing a complaint with PayPal, a buyer could contact their credit card or debit card provider. In this case, they may file a chargeback.

What is a chargeback?
A chargeback is when a buyer asks their credit or debit card issuer to reverse a transaction after it’s been completed. They are available only to buyers who make a payment with their credit or debit card. Because they are initiated with and decided by the debit/credit card issuer (not PayPal), the process is bound by the card issuer’s regulations and time frame.

Notice the use of "could" in the first paragraph. It almost seems as if it's up to the buyer if they want to go through Paypal's Claim process or the credit card company's chargeback process. In that case, a buyer would be double-protected, so to speak. I wonder if a Paypal were to declare in the seller's favor, if the buyer could then try for a chargeback via the credit card company.

  • Paypal in particular has an FAQ on this matter. paypal.com/us/brc/article/… – CKM Dec 18 '18 at 19:35
  • @CKM - I guess my Google-foo is getting rusty. It almost seems like it's up to me if I want to go through Paypal or the credit card company. Thus I'm double-protected. I'll have to ask Paypal for an explicit answer. – Bort Dec 18 '18 at 20:03
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    There are actually complaints out and about that Paypal has poor seller protection for buyers who want to perniciously chargeback for goods they're already sent out. – CKM Dec 18 '18 at 20:20
  • @CKM - When you say "chargeback", do you mean file a Paypal claim? Because as stated in your link, credit card chargebacks are handled through the credit card companies, not Paypal. I certainly know how Paypal tends to favor the buyer in claims, as I've had to deal with malicious buyers on numberous occasions. Seems to be mostly buyer's remorse, and they will completely make up details about items that are 100% new. – Bort Dec 18 '18 at 20:26
  • Chargeback meaning call the credit card provider, get the payment reversed for whatever claims. – CKM Dec 18 '18 at 20:54
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After contacting Paypal, I was told the following:

  • A buyer may chose to pay through paypal with a credit card, or chose to pay with their balance. If the Paypal balance is $0, the funds may be automatically withdrawn from a credit card. Regardless, sellers are responsible for credit card chargebacks, not Paypal.

When a buyer completes a payment through Paypal and using their credit card as the source of funds:

  • Should a buyer first file a claim with Paypal, and the claim is found in the favor of the seller, it is up to the buyer's card/bank on how to proceed if the buyer then requests a credit card chargeback. Some may dispute a transaction further, some may refuse as per their own policies.

  • If a buyer first initiates a chargeback with their credit card company, and that is ruled in the favor of the seller, the buyer cannot file a Paypal claim. Buyer's Purchase Protection is voided through PayPal if they first dispute the payment through their card/bank.

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