PayPal Users Are Dodging The Credit Cards

paypal_logo.gifA new survey from PayPal Australia about Christmas shopping habits reveals that we're still pretty conventional when it comes to gift buying online (DVDs, books and lingerie top the list). However, the study (which covered 1274 adults) also revealed an interesting detail: of the online shoppers who planned to use PayPal, more (51%) planned to use money linked from a bank account than via a credit card (32%). I'm not sure whether that's due to careful credit management or paranoia about credit card details getting stolen, but it's definitely a sensible move.


    I thought that it was the other way round - that it was safer to link to a credit card due to the extra protection many banks put cards for fraudulent purchases, with less safeguards on account transactions???

    I use Visa Debit card, much quicker, much easier. But going through PayPal i have to manually change funding option to my VISA and then confirm it, they don't make it easy to pay via CC and i have accidentally paid via e-cheque (bank) on a couple of occasions because of this.

    Its a bad idea to use your bank account. Using a credit card through paypal is one of the best ways to get protection buying something online.

    Credit cards come with all kinds of protection from the merchants, while paypal does as well they aren't as good as the credit card companies.

    You can "double up" on protection by using the CC through paypal. You can complain to both paypal and your CC provider if something goes wrong and one of them will be able to help you if the other one doesnt.

    Yes, I agree, it is a sensible idea, and one I utilise to the full.

    It's because Paypal's default is money linked from a bank account; there are a lot of checks and "are you sure?" messages to switch it to using the backup credit card as a primary source, even for one transaction.

    "Using a credit card through paypal is one of the best ways to get protection buying something online."

    Exactly. You've got two recourses - against PayPal and against your CC Provider should anything go Pete Tong.

    I'm not suprised by PayPal's survey results due to one simple fact - it costs them less in bank fees to take money through the Direct Debit system, than it does for Credit Cards (correct me if I'm wrong, but don't Visa and Mastercard take 4% of the sale vale; and Amex, Diners and the other ones we don't use much in Oz take nearer 6%).

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