Using credit cards for online or in-store purchases make transactions convenient and speedy but it poses a lot of risks for users such as identity theft. Having payment options when shopping online, paying bills, or receiving payments allows you more freedom to choose what suits your lifestyle needs and preferences.
There are over 100 million PayPal users who vouch that it is better than using credit cards. PayPal allows you to send payments online with your PayPal balance, credit card, or bank account. It’s a popular payment gateway that is also prone to hacking and fraud.
Here’s a comparison between using PayPal and Credit Card:
- Fees/Charges. When your use your credit card for buying items, there are no fees incurred but the merchant is charged with 2.9% interchange fee. With PayPal, you can choose to absorb the fees or allow the merchant to shoulder the fees.
- Both PayPal and credit card use are secure and convenient. Credit cards have efficient security features. In fact, most credit cards have a built-in early fraud warning system that alerts the credit card company for any suspicious or irregular charges made on your card. It will then block transactions until they hear from you. When your transactions are blocked, this could rather be inconvenient especially when you are traveling although this safety precaution protects you from unwanted charges for shopping expenses you didn’t make. There are also credit cards that provide buyer protection for your online purchases. You can also reimburse or take advantage of extended warranties at no extra charges. PayPal, on the other hand, has a Security Key service which generates a security code that you would need to enter together with your username and password. This works well even with your eBay account. PayPal can then send the security code straight to your mobile phone or you can opt for a credit-card type of Security Key that you can conveniently carry with you. There is a one-time charge of $29.95 for the physical key. Additionally, PayPal is also equipped with purchase protection in the event that you are charged more than what is in the price tag or if your order was not delivered. This only works if you are able to report it right away.
- PayPal issues a monthly statement that you can view online to check or verify transactions. This also goes the same way with credit cards as you will be sent statements of your purchases to check accuracy and discrepancies.
Regardless of whether you use PayPal or credit cards, you must take the necessary actions to protect your financial data or account information. You must always change logins and passwords to prevent hacking, be aware of phishing scams to avoid being victimized, keep all your browsers up to date, and monitor or review your credit card use with the statements provided.
Paying with PayPal helps you get the best of online transactions especially if you are uncomfortable with divulging credit card information online. The use of credit cards though is convenient for making cashless and speedy transactions in stores. Both PayPal and credit card use offer different layers of security or fraud protection to ensure that you are getting the best shopping experience online and offline.