The Internet has changed the ways people shop significantly. Gone are the days of dragging yourself to a store for every purchase. You can now order whatever you desire from anywhere in the world, but how should you pay? PayPal is a popular option for online monetary transactions. They make it easy to use from your phone or computer, and they don’t charge high fees like other competitors.
However, if you’re not comfortable with some external company handling your account information (or if you want to avoid the hefty transaction fees), then credit cards may be an even better option. This article discusses both sides and outlines why PayPal is safer than a credit card in today’s world.
Pros of PayPal
PayPal is simple to use, making it easy for those who don’t want to mess with their accounts or
credit cards. You can access your account through email and mobile devices.
It doesn’t charge high fees; the only fee you’ll see is a small transaction cost of around $0.30 per
purchase made on something like eBay or Amazon (whereas some other companies may charge upwards of three times that amount). They also offer 24/hour customer service should anything go wrong in the process.
PayPal is safe absolutely and suppose an unauthorized person gains access to your account. In that case, they will be unable to make purchases because once someone sets up two-factor authentication, all transactions require a security code from their phone when logging in.
PayPal only stores your card number for the transaction process – it’s not stored on their site, so you don’t have to worry about hackers gaining access. It also doesn’t store your credit or debit card information if there is a data breach at an online vendor.
You may want to consider using PayPal if:
You are wary of handing out too much personal info to retailers you do business with and prefer
shopping without leaving behind paper trails that could show where you bank, shop, and eat (and
what kind of cereal you buy).
Cons of PayPal
PayPal doesn’t offer as many protections against credit card fraud for buyers that some other
systems do. If you buy something with a stolen credit card and the thief disputes it, the dispute
process will go back to your account or debit card before it goes to theirs. This could leave you
holding the bag if someone else used your information without permission.
The secondary risk for PayPal users is that their password information could be accessed elsewhere, for example, if they use the same password on multiple sites. If their PayPal account is compromised, then any other accounts that share passwords with it are also at risk.
You can’t purchase or withdraw money from your account without linking it to an existing bank
account and providing additional information like a social security number and date of birth for
identity verification purposes. This may be too much trouble for you depending on what you want to buy or how often you plan to access your funds in this manner.
When using PayPal, there’s always the possibility that someone could steal your login credentials
while shopping online because PayPal doesn’t encrypt personal data when transmitted over
networks so that thieves can intercept messages containing user names and passwords as well as
credit card numbers.
Pros of Credit Card
You can’t exceed your credit limit when you shop using a credit card, which is not the case with
PayPal. In other words, if you have $1000 in available funds but want to buy something that costs more than $1200, then this avenue isn’t for you.
A credit card doesn’t require any setup as it just requires swiping or inputting information at
checkout and confirming your purchase by typing in a four-digit personal identification number
(PIN). This makes for faster transactions because there’s no need to enter anything before each
payment like one would do on PayPal. However, some people may prefer having separate login
credentials for different accounts rather than entering their PIN every time they make an online purchase.
Cons of Credit Card
Credit cards require a credit line, which means that you’ll need to have an existing account with a
bank or other financial institution, and they will check your income before issuing the card. If you
don’t have good credit, then it may be difficult for you to get approved for one of these cards.
When shopping online using a credit card, there is no protection like PayPal offers if something goes wrong with the transaction (e.g., if there’s fraud involved). In this instance would only use their funds on hand at any given time and not what was expected from the money coming in later. Also, because transactions are done automatically, all those extra fees could add up quickly without even realizing it! For example, when people have to make a payment on an account, they are charged.
Finally, some people believe that PayPal is more secure than using credit cards because the personal information about you and your bank account never gets passed over the internet when making transactions. It’s also safer because there’s no chance of someone stealing your funds if all fraud protections are set up correctly (e.g., PIN or Passcode protection).