Buying gifts from abroad with Paypal

I wanted to buy a Doctor Who sonic screwdriver for my son's birthday but found they are no longer stocked in the UK.

I found an online shop in New Zealand that appeared to have them and would ship to the UK, so I placed my order and paid using Paypal.

I then received an email saying there was no stock and I would have to wait two weeks; and even then I may not be lucky.

I emailed back and asked for a refund and the retailer replied stating that I would be charged a 15 per cent cancellation fee.

Andy Booth

Mr Booth was unsure if the Distance Selling Regulations (DSRs) applied to this retailer because it is based outside of the UK.

Naturally, he wanted to know what grounds the company had for charging a cancellation fee - shaky in our opinion. It is not out of pocket and didn't even know if it could honour the contract.

But the problem here is that the DSRs are law in the UK, and not in New Zealand. Retailers based outside of this country that sell to people in the UK are expected to abide by our laws.

However, the stark reality is unless the seller is part of a multi-national company with a lot to lose, it is not possible to enforce the DSRs on retailers based outside the European Union.

Fortunately, under Paypal's new rules Mr Booth stands a good chance of getting a full refund.

Since 1 November 2009, people who have used Paypal to pay for goods from a retailer anywhere can claim a full refund (including postage costs) for non-delivered items.

It doesn't matter whether there are funds in the seller's Paypal account or not, but Paypal users should be aware that some goods are exempt from the protection.
The buyer needs to file a dispute with Paypal.

It will then encourage communication between the buyer and seller. People often tell us they won't file a dispute because the seller will say goods are due in and that they should wait.

But often the customer will lose out because there is a 45-day time limit in which to raise the issue with Paypal. If the buyer files a dispute, the matter can usually be resolved without escalating to a claim.

Mr Booth followed our advice and filed a dispute; the seller didn't bother to contact him. He emailed us to say that Paypal had given him a full refund.

How to make a claim through Paypal

The way to make a claim via Paypal's new rules remains the same. Customers raise a dispute for goods not received on the site.

If the seller cannot prove that goods have been delivered and signed for, Paypal told us that the buyer's complaint would probably be upheld.

Paypal said it had not placed a limit on what a refund could be and it would be for the full amount of the transaction.