The safer way to pay: PayPal or Credit Cards
If you read my Sunday story, you know that expert Avivah Litan from Gartner Inc. says credit cards are the safest bet.
But reader Spence had a question:
I have may PayPal linked to my checking account; however am also able to have PayPal purchases charged to my Visa instead. Does the latter procedure afford any better protection? I note that most PayPal purchases would be from another state; would be from over 100 miles away from my home --- yet can Visa give me any more protection than PayPal alone? At least by PayPal, the merchant doesn't obtain my Visa number even if my PayPal purchase is made via that Visa account;and wouldn't this be no small level of protection from the real sharks? Yet, if I can pay the purchase via Visa (instead of my linked bank account) might I be getting multiple protects through that route --- or am I fooling myself?
Here's the answer courtesy of Litan:
Nothing, of course, is fool proof from bad businesses, but if you use Pay Pal and pay the balance with a credit card, you're much safer than using your bank account or a PayPal account. When you use the credit card, you're afforded the protections that PayPal does offer, but also all the protections that come under government regulations governing credit cards.
Credit cards are the safer payment method, she says. PayPal users should also be aware, Litan says, that when you have a checking balance under PayPal or a PayPal account, they almost always use those accounts by default when you pay since it costs them less money in those transactions. PayPal has to pay fees to banks everytime credit cards are used in transactions. You should actively select the credit card payment mode to avoid that default condition."
Categories: Consumer safety, Credit cards
