real reason for PaySystems point system?

[permutations]

I can't figure out the real reason for PaySystems point system. I know they are trying to weasel out of liability somehow, but I can't figure out exactly what liability. This message (or some variation) is supposed to be on Web sites that use PaySystems:

Online ordering
We have contracted with PaySystems to process our online credit card orders. When you place your order you will be purchasing PaySystem points which are immediately redeemed for the product that you have purchased.

About PaySystems points
If you purchase a product or service from us using PaySystems points you are thereby agreeing to the following: PaySystems Corporation is only a seller of PaySystems points that are redeemable for products or services at participating web sites such as this. Under no circumstances shall PaySystems be construed as offering any other product or service to any party whatsoever. PaySystems Corporation shall not be liable to any party on any grounds for any product or service offered for sale by us on our web site, by telephone or otherwise.

So what is the missing "therefore"? Ifa customer has a problem with a purchase, what can they NOT do because of this point system? They still can do a chargeback. What CAN'T they do? Sue PaySystems? I tried asking PaySystems about this, but couldn't get a straight answer.

 

[Artashes]

We have a member here at HD, who is a PaySystems representative. He may be able to clear this issue for you.

Best,

 

[jacker]

Artashes - you are a good man.

permutations - let me try and clarify the point system for you. If you have further questions, fell free to ask and I will put some effort into making you understand. I am sure you are not the only person who would like a simple, concise explanation.

First of all, we are required to have 'points' or 'credits' or something because the purchase is being made from us, not the merchant, and we have to explain that in some way. PaySystems has determined that the most effective way of relaying that to the public is through the 'points' system that we are discussing.

Now, for weaseling out of liabilities I wouldn't say we are weaseling; we simply will not be held responsible for the product. We take liability for the payment, but not for the product. Therefore, if we have a BBQ retailer selling barbeques and one of them explodes, the liability is left with the manufacturer or the retailer and that liability cannot be shifted on to us. (We don't have any BBQ retailers )

Let me know if this makes sense...

Cheers
James

 

[permutations]

Do you really need to use this "points" system to protect yourself from liability for the quality of the product? There are many other companies that take credit cards for other businesses, and they don't do this--for example, Digital River, 2CheckOut.

There's "price" to this point system. It's looks weird to the customer, and is probably a barrier to sale to some extent. I can't say what percent of customers abandon shopping carts because the point system seems tricky and confusing and erodes their confidence, but I'm sure it's above zero.

Have Digital River, 2CheckOut, or any of the dozens of other similar companies EVER been sued for problems with a product or service sold through them? Has PaySystems ever had to deal with such suits? There should be a very good reason to have a barrier to sale like this point system. I'm afraid it's just one of those over-cautious, deal-killer, maneuvers that lawyers are so famous for.

 

[Artashes]

permutations, I personally do not see how PaySystems or any other merchant provider could get sued because of manufacturer you buy from incompetence. And PaySystems just lets you know that before you engage in transaction, unlike other merchants who don't. PaySystems has contract relationship only between themselves and service/product provider. On some deeper level they might be held responsible for actions made only by the client (not buyers of that client), but usually it results in quick contract termination because most of the time these issues arise from abusing the terms of service.

If a company you bought from charged you wrongly - that company is primarily responsible, because they were the principle agent in this contract between you and them. You may do a charge back through both the company or your Credit Card processor, not PaySystems because it didn't sell you the product or service.

That's how I understand the game rules. Hope this makes it more clear.

I'm afraid it's just one of those over-cautious, deal-killer, maneuvers that lawyers are so famous for.

Nothing wrong with that. Its in the law book either way. PaySystems just makes publics more aware of principle-agent liability law. Check Civil Code of Lower Canada articles 1375+ (Contracts) and 1457+ (Civil Liability) and 1622-1623 (Anticipated Assesment of Damages).

Best,

 

[jacker]

Artashes

That was the technical, legal answer. Thanks.

And just to address the abandonment issue quickly. Our statistics show that just a very few number of potential purchasers abandon the transaction after reaching the payment page on our servers. It does happen in very small amounts, and maybe a percentage of that is due to the points system, but the accumulated percentage is very low.

Cheers
James