Paying with PayPal? Hold Up!

In addition to the traditional forms of payment (Visa, MasterCard), J.Crew also accepts MasterPass and PayPal. J.Crew has been accepting PayPal for some time now. However, there are still a few "hang ups" that JCAs have encountered with using this payment method.

"Thanks!" to AppGal (in this post) who raised the following question:

OT question: Has anyone used Paypal to pay for an order that had a backordered item? Does the amount for the backordered item deduct from your account once it's shipped (like when you use a CC) or do you pay for it all at once? 

"Thanks!" to R (in this post) who replied with the following:

I inquired with CS about this once, and this is what their reply was with regard to PayPal and waitlisted items, and this was the response:

"When placing orders with PayPal we are only able to hold authorizations for 30 days. If the item doesn't become available within that time limit then we will need a different form of payment to use. You should be notified via email if we need another form of payment."

So that's an explanation, but clearly many people have not been notified that a new form of payment is required...

From what I heard, if you use PayPal then the funds go "on hold" up until the item is available, shipped, and then fully charged from your account. (Unlike when placing an order with a credit card like a Visa. The card is only charged when the item is available, shipped, etc. No holding funds for any time period.) If the item is wait-listed more than 30 days, customers may lose out on the item because PayPal only holds onto your funds for a period of time. I have not heard of J.Crew notifying customers about another form of payment when the time period runs out. Probably because PayPal does not really notify them, and J.Crew thinks the form of payment is declined. But I am not 100% sure.

Also, when it comes to returning with a PayPal payment... Doesn't really work. I personally encountered a situation where I paid with PayPal and tried to return an item. There is no way for the store to return your money onto your PayPal account. Thankfully the store just put it back on a credit card.

I like paying with PayPal for certain scenarios (like for the JCA Weekly Exchange), where my credit info is kept private. However, for major retailers, I find using mainstream credit cards like Visa, is the way to go. It is much easier to get refunds and to look up past orders.

What are your thoughts on PayPal & J.Crew? Are you a fan of this payment method? Are there any tips you would share with fellow JCAs when it comes to PayPal?