Core
Essential
- Joined
- 21.09.20
- Messages
- 85
- Reaction score
- 262
- Points
- 53
PayPal has been around since 1998 when it emerged as a safe and secure way to pay for purchases on eBay. If PayPal wasn't as safe or safer to use than a credit card, cash, or a check, it would have been consigned to the rubbish heap of dead websites long ago.
In fact, it could be said that enabling safe transactions is PayPal's only job. But the job keeps growing and the challenges are never-ending. PayPal now has an estimated 360 million users around the world and offers several products. Every one of those products is designed to make it safe to send or receive money, electronically or in person.
When Using a Credit Card
A few tips for protecting yourself when using plastic credit cards:
When Using PayPal Or a Credit Card Online
A Special Precaution When Using PayPal
As noted above, PayPal has a safety feature called SecurityKey. After enabling this key feature, you'll get a temporary security code by text message to enter in addition to your password.
So, even if someone breaks into your account, no transaction can be made.
Who Is PayPal Anyway?
PayPal Holdings Inc. is now a public company listed on the Nasdaq. It rolled out its first initial public offering in 2002 but was then acquired by eBay.
At one point, PayPal was growing faster than its parent company. eBay decided to spin it off in 2014, and it again became a separate public company.
In addition to Xoom, PayPal has acquired several other companies. These include Honey Science Corp., an online couponing site, iZettle, a payments processor, and Braintree, yet another mobile payments app.
FAQs
Here are some brief answers to a few burning questions about PayPal and credit card security.
Is It Safer to Use PayPal or a Credit Card?
PayPal is at the top of the heap, security-wise. That's not surprising since it evolved with the web, and has had to keep up with every fraudulent scheme that evolved with it. It has some additional features to give online shoppers ease of mind, such as a money-back guarantee if your online purchase turns out to be nothing like the description.
The credit card companies have spent a great deal of money and time putting security measures in place, as well they should. They are legally on the hook for all but the first $50 of any purchase fraudulently made through your account.
For any and all of these companies, thwarting fraudsters is a never-ending battle. Their customers can help by being careful how they use their accounts, whether it's a plastic credit card or an electronic app.
Is PayPal Safe to Link to a Bank Account?
To use PayPal, you have to link to a bank account or a credit card, or deposit money directly to PayPal, or some combination of all of these.
When any of these is used, the transaction is accomplished using encrypted data, meaning that your private account information is not revealed, even to the recipient of the money.
It's cheaper to pay directly from your bank account. No additional fees are charged.
Is PayPal Safe for Debit Cards?
Same as above. When you pay using the debit card option, the information is transmitted only in encrypted form.
Is PayPal Safe to Receive Money?
Yes, and you can transfer it directly to your checking account from there.
In fact, it could be said that enabling safe transactions is PayPal's only job. But the job keeps growing and the challenges are never-ending. PayPal now has an estimated 360 million users around the world and offers several products. Every one of those products is designed to make it safe to send or receive money, electronically or in person.
View hidden content is available for registered users!
When Using a Credit Card
A few tips for protecting yourself when using plastic credit cards:
- Cut up any card you still have that doesn't have a chip in it. If you come across a reader that requires you to swipe the card, because the chip reader is malfunctioning or the store has an out-of-date-machine, avoid using it.
- Use only bank-owned ATMs to get cash.
- Pay for gas inside the station, not at the pump. (Gas pumps are notoriously easy to outfit with a card skimmer that steals account information as it is used.)
When Using PayPal Or a Credit Card Online
- Make online purchases only on secure sites. These usually have a url that starts with https (rather than http) and display a symbol of a lock. These are signals that the connection between your web browser and the site's server is encrypted. This is by no means guaranteed protection7 but it closes off one avenue for fraud.
- Don"t use the public wifi available at coffee shops and airports. Use a virtual private network (VPN) instead.
- Don't store your credit card information online at your favorite retailers. Type it in every time.
- Beware phishing attacks. These usually arrive via an email or text message promising you something great, if you only click this link.
- Change the passwords on your credit card accounts (and your PayPal account) frequently, and don't use your name, your kids' birth dates, or any other too-obvious password.
A Special Precaution When Using PayPal
As noted above, PayPal has a safety feature called SecurityKey. After enabling this key feature, you'll get a temporary security code by text message to enter in addition to your password.
So, even if someone breaks into your account, no transaction can be made.
Who Is PayPal Anyway?
PayPal Holdings Inc. is now a public company listed on the Nasdaq. It rolled out its first initial public offering in 2002 but was then acquired by eBay.
At one point, PayPal was growing faster than its parent company. eBay decided to spin it off in 2014, and it again became a separate public company.
In addition to Xoom, PayPal has acquired several other companies. These include Honey Science Corp., an online couponing site, iZettle, a payments processor, and Braintree, yet another mobile payments app.
FAQs
Here are some brief answers to a few burning questions about PayPal and credit card security.
Is It Safer to Use PayPal or a Credit Card?
PayPal is at the top of the heap, security-wise. That's not surprising since it evolved with the web, and has had to keep up with every fraudulent scheme that evolved with it. It has some additional features to give online shoppers ease of mind, such as a money-back guarantee if your online purchase turns out to be nothing like the description.
The credit card companies have spent a great deal of money and time putting security measures in place, as well they should. They are legally on the hook for all but the first $50 of any purchase fraudulently made through your account.
For any and all of these companies, thwarting fraudsters is a never-ending battle. Their customers can help by being careful how they use their accounts, whether it's a plastic credit card or an electronic app.
Is PayPal Safe to Link to a Bank Account?
To use PayPal, you have to link to a bank account or a credit card, or deposit money directly to PayPal, or some combination of all of these.
When any of these is used, the transaction is accomplished using encrypted data, meaning that your private account information is not revealed, even to the recipient of the money.
It's cheaper to pay directly from your bank account. No additional fees are charged.
Is PayPal Safe for Debit Cards?
Same as above. When you pay using the debit card option, the information is transmitted only in encrypted form.
Is PayPal Safe to Receive Money?
Yes, and you can transfer it directly to your checking account from there.