Can someone explain how PayPal protects you and your reservation?

[collegejunkie]

I've never used PayPal before, but we are about to rent from someone for a trip later this year. We have always rented from people we know in person.

Do we need a contract or does PayPal cover the reservation? I heard we need to pay under "Goods and Services", which has a fee. Because the reservation is a good, is that where the protection comes from? What happens if the person renting does not actually make the reservation? Is that where PayPal steps in?

 

[disneynutz]

You need a contract, PayPal offers nothing if something goes wrong.

Bill

 

[Deb & Bill]

DVC requires all members renting their point to use a written contract.

 

[Sammie]

Interestingly Paypal actually does not allow Timeshare transactions -- offers to buy, sell, or rent rights to the periodic use of a property.

People do it anyway of course, but if something happens you are on your own.

 

[mcorbo]

DVC requires all members renting their point to use a written contract.

First I have ever heard of that before?

 

[supersnoop]

First I have ever heard of that before?

It's been in the legal docs since 1992. But nobody ever reads those.

 

[bwang123]

Yes, everyone here is correct about Paypal. They only cover tangible goods sent to the verified shipping address in a buyers account.

Anything outside of that, the seller is not protected including DVC rentals. Paypal is really bad about protecting sellers, so make sure you read all of their terms before doing any business through them.

 

[Lynne M]

Many people assume that Paypal will get them their money back if a rental goes south, but I'm pretty sure that Paypal's terms of service states that their protection doesn't cover vacation rentals.

 

[mort1331]

When renting, even a written contract has limited protection. There is a huge amount of trust on both sides when renting.

 

[mcorbo]

I do use one when I rent out my points, but I had no idea that DVC required owners to use a contract for rentals.

 

[Dean]

When renting, even a written contract has limited protection. There is a huge amount of trust on both sides when renting.

And it has risks since many make it more complicated than it needs to be.

 

[SuperRob]

When renting, even a written contract has limited protection. There is a huge amount of trust on both sides when renting.

All a contract does is make it so you can sue if the other party violates the contract. Then you have to win. Then you have to be awarded damages. Then the other person has to have the means to pay those damages, and if they declare bankruptcy, you get nothing even after all that.

 

[bumbershoot]

Many people assume that Paypal will get them their money back if a rental goes south, but I'm pretty sure that Paypal's terms of service states that their protection doesn't cover vacation rentals.

You are totally correct!

 

[Brian Noble]

OP: the vast majority of these transactions go off without a hitch. If you've done even minimal due diligence (a phone call vs. all email, etc.) then you can probably sleep soundly. That said, there is always a remote chance that the rental could go south. If you could not absorb that without significant pain, you might want to reconsider a rental.

 

[intertile]

If you are renting the points , then I suggest you pay with a credit card using PayPal. This way If PayPal doesn't help you, you can always dispute the charge with your credit card.
At the end of the day, you would still be sick without a reservation....but you might get your money back.

 

[bumbershoot]

CCs have a requirement of a certain amount f time betewen charge and chargeback. Unless they are making the charge a month from the reservation, I doubt that the CC can help.

Paypal and ebay used to have much easier to find info about how they do NOT protect timeshare rentals. I have found it many times in the past. I could not find it tonight. That doesn't mean they have changed (if they changed they would shout it from the rooftops). It just means they don't want you to KNOW that there's no protection.

 

[intertile]

CCs have a requirement of a certain amount f time betewen charge and chargeback. Unless they are making the charge a month from the reservation, I doubt that the CC can help.

Actually, that is a common misconception. I have a business that accepts credit cards. I'm not sure on discover, but no where does it have a time limit for a charge back. It's on the merchant to deliver and keep a record for a "reasonable" amount of time. I've specifically asked the question, and was told the same by visa/mc/Amex.

Think of it this way, you order a couch from Italy that takes 4 months to deliver. After 4 months the merchant informs you of a delay and strings you along for the next 3 months. (This happened to me with a company that ended up going out of business). 7 months later you can still dispute the claim.

 

[Dean]

If you are renting the points , then I suggest you pay with a credit card using PayPal. This way If PayPal doesn't help you, you can always dispute the charge with your credit card.
At the end of the day, you would still be sick without a reservation....but you might get your money back.

I've seen lots of reports of people trying unsuccessfully to do charge backs on timeshare or condo rentals. As I understand it, this has generally been unsuccessful. Your agreement with the CC is to pay the merchant, in this case paypal. If they do that and paypal does their part, pay the other party, the transaction between paypal and the CC has been completed correctly and successfully even if the third party doesn't perform. I believe it's now outside paypals rules to pay for such transactions so I doubt one would have much success for this situation. IMO the best way to protect oneself is through due diligence and proper setup for both the seller and buyer.

CCs have a requirement of a certain amount f time betewen charge and chargeback. Unless they are making the charge a month from the reservation, I doubt that the CC can help.

Paypal and ebay used to have much easier to find info about how they do NOT protect timeshare rentals. I have found it many times in the past. I could not find it tonight. That doesn't mean they have changed (if they changed they would shout it from the rooftops). It just means they don't want you to KNOW that there's no protection.

It used to be 45 days with paypal.

 

[supersnoop]

If you are renting the points , then I suggest you pay with a credit card using PayPal. This way If PayPal doesn't help you, you can always dispute the charge with your credit card.
At the end of the day, you would still be sick without a reservation....but you might get your money back.

If you dispute a credit card transaction through PayPal, PayPal will blacklist you. When you pa with PayPal, you are paying PayPal and they are paying someone else. You agree to their terms. If you dispute something where they followed the terms of the deal, they won't do business with you anymore.

 

[bumbershoot]

Actually, that is a common misconception. I have a business that accepts credit cards. I'm not sure on discover, but no where does it have a time limit for a charge back. It's on the merchant to deliver and keep a record for a "reasonable" amount of time. I've specifically asked the question, and was told the same by visa/mc/Amex.

Think of it this way, you order a couch from Italy that takes 4 months to deliver. After 4 months the merchant informs you of a delay and strings you along for the next 3 months. (This happened to me with a company that ended up going out of business). 7 months later you can still dispute the claim.

Good to know.

Though the two times we've thought about doing a chargeback, the info as I went through the form asked if I had tried to resolve things with the company. Both times I hadn't, so I stopped the chargeback and contacted the company. And was successful.

What supersnoop is saying about how you're paying paypal, not the company, makes me think that you do have to go through paypal to resolve it, and that's not necessarily going to go well...