Which is safer PayPal or credit card?

Fintech and credit offer a multitude of options for making payments through encrypted transactions. A common question arises when making online payments: What is more convenient, PayPal or credit card?

As technologies advance, so do offerings to the general public, which has allowed both PayPal and credit card companies to offer more options to their customers.

PayPal, credit cards, digital wallets, cryptocurrencies and other technologies offer innovation as well as security risks. When it comes to security there are a variety of ways information can be stolen. Some of these ways include identity theft, HTML interception, server breaching, and point-of-sale attacks.

PayPal and credit card companies have been around for a long time. Although they seek to mitigate some of the risks mentioned, they cannot always be the only ones responsible for avoiding fraud and scams. The highest standards in the areas of encryption technology systems come into play here.

PayPal and credit card vulnerabilities

In some more sophisticated ways, payment information can be stolen by thieves who install a device at a point of sale at a gas station or an ATM, for example. All of these risks occur with any type of payment.

Whether you use Paypal or credit card, payment information theft is often the result of lax customer practices rather than advanced hacking methods. Any payment card can be compromised if it is stolen or voluntarily given to a scammer through deception.

PayPal is one of the most advanced payment processors in terms of encryption security, but each credit card company you work with may have different standards.

First of all, regardless of the payment processor you use, it is important to be cautious and careful with your own information.. So beyond that, how safe are PayPal and credit cards and what do you need to know?

Important information:

  • PayPal and credit cards are popular payment processing options for different reasons.
  • PayPal associates and integrates more with online transactions, online risks and online vulnerabilities.
  • Credit cards often come in physical form for use at point-of-sale transmitters or in manual online transactions, leading to different types of vulnerability.


PayPal is an industry-leading payment processor with credit and debit card options to match offerings from various competitors. Plus, their services go above and beyond to offer easy online payment processing.

Many people are aware of the risks in using conventional credit and debit cards, but online payment processing presents more advanced risks. Typically, the complexities online can be two-fold, for both the sender and the receiver.

platform PayPal seeks to mitigate risks by incorporating a secure gateway. In many cases, the secure gateway can help alleviate information risk to both the sender and receiver.

Indeed, the exclusive use of secure and blocked websites is an important precaution that helps prevent sensitive user information from being stolen.

Some PayPal security controls include the following:

  • Information encrypted with the highest level of technology available on the market.
  • Data stored on servers that are not directly connected to the Internet.
  • Gateway that can allow payments through the PayPal system using the email/password without the full transmission of payment information to the merchant.

Slava Gomzin, author of “Hacking Point of Sale: Secrets, Threats and Solutions in the Payment App”, supports his argument. “If you have an option on the web, always select PayPal,” says Gomzin.

PayPal even pays hackers if they find vulnerabilities in their systems. According to Dean Turner, director of security intelligence at PayPal, “If you care about the product [y] you care about your customers, you care about the safety of your customers: this is what you have to do.”

The PayPal brand may also be associated with other names under the company umbrella. PayPal has bought Braintree, Venmo, Paydiant, Xoom, Modest, Tio, iZettle, Hyperwallet, and Honey. These companies don’t necessarily offer the same security measures, but they take advantage of some of the same development channels. So please note that the use of any of PayPal’s trademarks does not necessarily offer the same quality, so it may be important to research each of them to see how they work.

What about credit cards?

Credit cards themselves are a special case. Credit cards usually have a physical form. This means that the user is in possession of a card that includes card numbers and authorization data. This differs from PayPal’s credit offer, for example, which is completely internet-based.

As stated, credit cards in physical form are more susceptible to the risks of physical theft, fraud and theft. This can present further vulnerabilities at both conventional and online merchants.

Investment in security

Most credit card companies have invested heavily in security technology, matching PayPal and other industry leaders. Not all credit card companies are created equal, however some like Chase, American Express and Bank of America are more advanced than others. This leaves some responsibility on the user to understand the safety precautions.

Too credit card companies are known to be somewhat less cautious and resistant to some of the cybersecurity practices PayPal faces. According to the Financial Services Task Force, hackers are not paid by the banking industry to help them look for security flaws. PayPal, however, is the Holy Grail for hackers. But just because the company hasn’t been hacked doesn’t mean it won’t be. Hackers are constantly trying to break into PayPal’s servers. And while PayPal operates through a gateway using email/password authentication rather than standard transmissions, theft of a user’s email/password could compromise their entire wallet rather than a single card, although credit card companies Credit cards may have to assume some responsibilities if fraudulent transactions occur.

The chip in credit cards

In the world of credit cards, another area in which we must be vigilant in order to increase security is that of the chip. Already used in most European countries and many others, these cards offer an additional layer of security. The chip stores information more securely than a magnetic stripe. Most card companies also require additional interface checks, which makes information more difficult to steal from a chip card reader.

So PayPal or credit card?

When compared to PayPal, credit card security risks may be a bit higher for the user. When using a credit card for an online payment, most companies do not offer a gateway to protect account information at all.

This means that there is a greater need to ensure that an online payment is made through a secure site (these usually include the HTTPS protocol and show a padlock next to the URL). Without any shielding of financial account information, credit card numbers are at greater risk than PayPal payments of being intercepted when transmitted through website development code.

In any case, whether you use Paypal or a credit card, you can go a long way in protecting yourself against various scams just by following the minimum security recommendations.

Keep reading: