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Virgin Atlantic is desperate for your cash! Recently, I wrote about how Virgin Atlantic was offering 2,500 bonus miles for each Virgin Atlantic flight booked before 30 April, 2020 – click here for details.
Recently, this offer was improved, but only for those who are willing to pay with PayPal. You can earn 10,000 bonus miles for a return ticket – 5,000 miles per flight – again booked before 30 April, 2020. You must fly before 31 March, 2021 and the bonus miles will be earned after your flight.
What You Need to Know About PayPal
According to “Section 75” of the Consumer Credit Act, your bank must reimburse you for any spend above £100 if the merchant fails to deliver as promised. Crucially, this only applies to CREDIT CARDS. (i.e. consumer credit) Because of their exposure to the merchant, many banks won’t pass along your money in a timely fashion.
Because there is no credit element involved (in nearly all circumstances), you are not covered by Section 75 if you choose to pay via Paypal. This situation applies even if you use a credit card to pay via Paypal. You are instead covered by Paypal’s own woolly Paypal Buyer Protection policy, which is essentially just a goodwill policy that allows…
PayPal to make a final decision at its full and sole discretion on any problem raised by a buyer in respect of any purchase paid for using PayPal.
Well… I think that it’s pretty simple. Due to their Section 75 exposure, banks aren’t passing along whatever money Virgin Atlantic is managing to earn from selling tickets. And Virgin Atlantic is desperate for money to stay alive…
But if the airline offers a bonus for paying with a debit card or bank transfer, etc. alarm bells would start ringing everywhere… as that would be a clear sign that the airline is going bankrupt sooner rather than later. A Paypal-specific offer is sufficiently disguised as a special partner promotion, but the implications are the same – Paypal will be immediately passing your money along to Virgin Atlantic, whilst you lose any statutory rights to receive a refund should Virgin Atlantic stop operating.
The Bottom Line
I have a really bad feeling about Virgin Atlantic. I would be thrilled if the airline manages to pull through, but I have my doubts about how the government could even structure a bailout of the airline – a topic I’ll cover in a future post.
It’s worth noting that if you are tempted to book a codeshare flight on Delta or another partner, only Virgin Atlantic OPERATED flights qualify for the bonus.
So, this 10,000 bonus mile offer is really for the truly adventurous amongst you.