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PayPal v Credit Card – Which One Is Safer To Use?

Online shopping has taken the world by storm, given the convenience, it comes with. The prospect of purchasing items and having them delivered to the doorstep is one that most people are clamoring for. Payment systems have all but enhanced the trend, making it easy for people to buy items and pay for them at the click of a button. PayPal and credit cards are at the heart of online transactions as preferred means of finalizing transactions.

However, at a time of increased online fraud, there is always a big question, which one is a secure and safer payment option PayPal or credit cards? While both come with features and services designed to protect people’s data and money, they differ a great deal. Therefore, choosing between the two can always be challenging.

PayPal vs. Credit Card

Since its inception in 1998, PayPal has set out to revolutionize electronic payments, and it has done so, going by the security features put in place. If the system was not as safe as it is, it would have withered a long time ago.

Enabling safe transactions might as well be the reason PayPal is a preferred payment system for most people. The payment system is currently being used by more than 360 million people worldwide. The system accrues its edge, given the array of weapons it uses to keep hackers and fraudsters at bay.

End-to-End Encryption

It is safe to say PayPal offers optimum protection from hackers, given the end-to-end encryption in use in all transactions. The encryption is designed to keep hackers trying to capture private information at bay. The encryption ensures no financial information is ever sent out that could be used to compromise one’s account.

Two-factor Authentication

PayPal leverages the Two-Factor-Authentication system to shield against unauthorized access, to people’s Paypal account. The system works by sending a one-time PIN to a mobile phone that is used to login into an account.

PayPal Purchase Protection policy

The PayPal Purchase Protection Policy is another safety measure designed to ensure that people get the items they purchase. In most cases, people are usually reimbursed in full, if a product purchased online turns to be significantly different from what one ordered.

Similarly, if an unauthorized purchase is made using your PayPal account, you will be eligible for a refund if the same is reported within 60 days. Likewise, if a paid-for item does not arrive as expected, one is usually eligible for a refund.

Fraud Monitoring

Paypal leverages advanced technology to monitor any form of fraud in people’s accounts. The use of advanced technologies such as artificial intelligence and machine learning is already gaining prominence in the industry, making it possible for the likes of PayPal to track and monitor people’s account.

Credit Card Security Features

Credit card companies have also invested in leading security technology in a bid to protect people’s data and money. However, not all credit card companies leverage advanced security technology, with some more advanced than others.

Anti-Fraud Technology

A good number of credit cards come implanted with a chip inserted, replacing the traditional magnetic stripe. The chip relies on anti-fraud technology that sends encrypted data, therefore, making information harder to steal. The technology has made it safer to use credit cards in stores.

Two Factor Authentications

Reputable credit card companies have also implemented the two-factor authentication model to protect users against unauthorized transactions. In this case, people are usually prompted to authorize transactions using a one-time Pin or other security Step.

Encryption Technology

One of the biggest undoing’s is that credit cards don’t offer encryption for purchases made in stores. In most cases, credit cards rely on the stores’ encryption, more so online stores rather than having their own.

Fraud Monitoring

Most credit cards come with 24/7 monitoring services that scrutinize transactions that take place and flag down any suspicious activity that might not be authorized.

Which one is Safer? Credit Card vs. PayPal

PayPal appears to have an edge when it comes to protecting people’s data and unauthorized entry compared to credit cards. The end-to-end encryption in use in PayPal ensures people’s financial data is stored away in a single online vault, beyond hackers’ reach. In contrast, credit cards don’t offer end-to-end encryption.

While credit cards offer fraud monitoring services and two-factor authentication, the same has done little to stop the unauthorized use of people’s credit cards. There is a thriving black market for stolen credit card data that has seen people lose thousands of dollars on their information being used to make purchases on and offline. Unlike PayPal, Credit card fraud has been steadily increasing.

The need to enter credit card details each time one wishes to make a transaction all but increases the risk of fraud with credit cards as opposed to PayPal.

Ruchi Gupta

Ruchi Gupta covers various beats from finance to technology and from lifestyle to hobbies. She has an MBA in Finance. Ruchi enjoys writing on celebrities and political news. She likes traveling and exploring places.
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