Which is safer online: PayPal, debit or credit?
Where the security of online shopping is concerned, we’ve come a long way.
Seems like just yesterday my parents were – more than a decade ago but at a time when the Internet was in its relative infancy – equal parts confused and cynical over using their Visas online.
Now? People throw their credit card numbers around willy-nilly, rarely concerned over the consequences simply because it never happens to us. Online shopping fraud isn’t totally uncommon, but unless we get nailed, we’ll still happily plug in our verification codes wherever prompted.
There is value, though, in discussing which methods of online payment are the safest.
Some 92 million people bought things online last year, and most spread their purchases over three payment methods: credit card, debit card and third-party services like PayPal.
And the New York Times has broken down the security wherewithal of each. They rank, by my estimation, in this order:
3) PayPal, etc.
Using a service like PayPal is great when you shop from a site with less-than-reputable security measures. It acts, essentially, as a buffer between your credit card and that online Turkish merchant who sells Chanel handbags for $40 each. Yet, while the act of using the service is sound, if your PayPal account itself is hacked, you’re largely void of recourse. According to the Times, it’s markedly harder to track fraud through your PayPal account than it is when your credit or debit card has been used. Many times, what is stolen here – however atypical of an occurrence that may be – is lost forever.
2) Debit cards
When a debit card is used online, consumers are generally covered against fraud as long as they catch it quickly. If you’ve paid with debit and your info has been compromised, your liability is much lower if you report the crime within two business days. Wait longer and there’s less the bank will do for you, but generally if fraudulent transactions are called in within two months, you’ll be covered for the majority of your loss.
1) Credit cards
Credit cards win the online security war because of a two-tiered attack. For one, most Canadian banks will reimburse and wipe clean 100% of bogus charges on your card if you report it quickly. And if that’s not enough, there is the method of using a one-time credit card. For an activation fee of about $6, consumers can load up a single-use credit card – available from most Canadian banks and cheque cashing stores – to use online to create another layer of protection. Only loading up the amount of a purchase to your card each time shields even the savviest crook from accessing more of your money.
Tell us: which method of payment do you feel safest using online?
By Jason Buckland, MSN Money
Posted by: Dave Brown | Mar 27, 2021 7:12:02 PM
In a world of over 6 billion people, a market of 92 million seems under penetrated.
Given the massive advantages of convenience, efficiency and cost, Mt. Buckland could have written a more informative article about why global consumers are reluctant and reticent to make purchases online. Are there cultural impediments? Generational discrepancies? or could there be alternative issues which create resistance?
Posted by: joseph | Mar 29, 2021 10:03:16 AM
I have one "low limit" credit card for rare internet purchases, hotel reservations etc. and one higher imit card for emergencies and person to person only transactions. I just don't trust any online payments, credit card, paypal or debit. I pay in cash when I can and don't give any personal information when I do so. Many stores ask for phone numbers, postal codes etc... Not from me! Knock on wood, so far so good.
Posted by: Nabi | Mar 29, 2021 5:17:01 PM
Credit card's the way to go--you can check your account online and the card agency also has a list of crooks, so when their names pop up, your card is temporarily suspended.
Posted by: John Day | Mar 29, 2021 7:06:05 PM
We have been using paypal....both...personal/business for 10 years or more now,
i think...eversince, paypal opened for business, years ago.
We have conducted both personal/business transactions thru paypal in huge numbers,
over the years....without any incidents.
This is not possible without due deligence and personal responsibility for your passwords.
sincerely
John.
Posted by: Canadian Buyer | Apr 4, 2021 12:20:03 AM
I've had a Paypal merchant double charge (only $35) by 'accident' once, and the second I called VISA, they immediately reversed the second charge once I faxed a signed letter saying it wasn't mine. No other questions asked. Paypal later sent an email acknowledgement of a settled dispute, but I think using Paypal with your credit card actually gives you DOULBE protection. Just my opinion.