posted on October 24, 2001 08:54:50 PM new
Does anyone know what kind of relation does Paypal have with M/C and Visa? Do they act as a kind of middleman between those two merchants and the seller? Basically my question is if a person uses PayPal to pay a seller, and they use their VISA card, is Paypal's responsibility to take the funds from the Buyer (VISA) and transfer it to the seller? If the seller does not receive the funds and Paypal keeps the funds without providing a reasonable explanation, does VISA or MASTERCARD have anything to say in that matter?
posted on October 24, 2001 10:51:33 PM new
Actually, that's not what he said. PayPal is acting as an intermediary between a buyer and a seller. If PayPal refuses to allow the seller to withdraw the money which was sent by the buyer, then does the buyer have the option to refuse payment on their Master Card or Visa bill?
posted on October 24, 2001 11:26:37 PM new
Actually my question was more like "If Paypal refuses to let the seller withdraw the money, can the seller contact VISA and M/C and try to get them involved, because they are afterall where the money is origianlly coming from, and they are the main payer".
posted on October 25, 2001 08:42:22 AM new
PAYPAL is the merchant of record with Visa and Mastercard.
If they have restricted the SELLER's account, and the SELLER cannot access the funds, then the BUYER will have to contact Visa and Mastercard to do a chargeback.
Visa and Mastercard do not have a business relationship with the SELLER, they have one with PAYPAL.
The SELLER does not have access to WHICH bank issued that particular Visa or Mastercard, so they cannot contact them. Even if they DID contact them, they don't have a merchant agreement with Visa or Mastercard, PAYPAL does, so the bank would not communicate with the SELLER anyway.
