Choose a Payment Method: PayPal vs Credit Card

Choose a Payment Method: PayPal vs Credit Card
Online shopping includes a range of payment options. Antlii/Shutterstock
Anne Johnson
Updated:
You’re about to make an online purchase. At the shopping cart, a payment choice comes up. Do you want to use PayPal or a credit card to pay for the purchase? They both seem like good options. What are the differences? And is one more secure than the other?

The Basics of PayPal

PayPal is an online payment system that allows consumers to make financial transactions without paying directly from a bank account or credit card. It is a financial go-between.

Most PayPal users link a credit card or bank account to their PayPal accounts. When you pay with PayPal, you select how you wish to fund your payment. PayPal then pays the retailer by transferring funds from your bank account, credit card, or PayPal balance.

Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.
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