Safety of PayPal Vs. Credit Card
The convenience of online shopping makes it a preferred method for many. But what's the best way to shop online? Both credit cards and PayPal are smart methods. Keep in mind also that companies are generally aware of the dangers of online shopping and tend to be good at accommodating customers by making sure they are protected and can get their money back if they do become a victims of fraud.
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Significance
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Shopping on the internet requires submitting sensitive financial information, which can be stolen by tech-savvy thieves. Protecting yourself is essential. Both credit cards and PayPal can provide the extra protection to stop thieves from getting your money.
Credit Card
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Financial experts suggest shopping online with a credit card. US federal law gives credit card users the right to dispute anything that's not received and most issuers have a zero-percent liability policy if your card is used fraudulently. Some cards, like Discover and Citibank, offer virtual cards. Virtual cards are ideal as they generate a number for one-time usage without giving out your real card number.
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PayPal
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PayPal is ideal for those who do not have any credit cards or want to pay directly from a bank account or PayPal balance. Current users can use Secure Cards, which are the same as virtual cards. There are two types available: Single-Use and Multiple-Use. Even without the secure card, shopping on PayPal allows you to pay a merchant without using your real credit card number. You are not responsible for any unauthorized purchases from your PayPal account, either.
Other Protection
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No matter how you choose to conduct transactions online, never do business via email as it is too easy for a thief to get your card numbers this way. Also keep your operating system, browser and security software up-to-date, and never shop through a merchant you don't know unless you've checked them out first.
Interesting Facts
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Of the 72,940 complaints referred to state and local law enforcement agencies in 2008 by the FBI, nine percent of these involved credit or debit card fraud. The average loss was approximately $223. In almost 30% of all fraud cases, the means used by the criminal to get the information was a website.
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- Photo Credit Image by Flickr.com, courtesy of Andres Rueda
