Paypal Vs Credit Card: Which Is Better to Use and Why?

By: Sr vini

PayPal and credit cards are safe & fast options for payments. Both these provide great protection & ease of paying at stores without carrying physical money with you. PayPal even offers you to receive money from others. In the internet era, both PayPal and credit cards are commonly in use. But from both these options, which is the better one? Overall, it is Paypal vs Credit Card: Which is better to use and why? 

If we see, both Paypal and credit card have their own advantages & disadvantages. On the one hand, Paypal allows you even to receive money; credit cards, on the other, lend you money for a fixed time period. To know which one is better for them, let’s deeply analyze the pros and cons of Paypal and credit cards!

Paypal Vs Credit Card: Which Is Better to Use and Why?

PayPal and credit cards are great payment systems. Their security & easiness to use offers you to make payments & order anything from anywhere. But which one is better? Which offers better security? Which offers more features to their customers? 

Let’s have a look at the services that both these options provide & then judge which is better!


One of the widely used online payment methods nowadays is PAYPAL, with Visa taking the top spot. To use PayPal, you will need to link your credit card, debit card, or bank account to the service. You have the option of selecting which PayPal account will be charged when making a purchase.

Here are its features:

  • Because the vendor never sees your credit card data when you use PayPal, it’s a safer way to make an online purchase.
  • It even has a limit on how much money you can spend on buying anything.
  • PayPal covers you if you don’t pay for something that you didn’t buy within the period of 60 days.
  • Using the address verification system checks the billing addresses of the seller to ensure security & safety.
  • A PayPal account that you may use to make purchases on different websites may be more convenient and quicker to set up.
  • A simple sending account can be created by depositing funds directly to your PayPal balance.
  • The data is always encrypted to protect against fraud and identity theft, providing more security.
  • Payments made through PayPal are eligible for the usual rewards rate for your credit card as long as the card is linked to your PayPal account.

Paypal provides a lot of features & has a lot of advantages & ease of doing transactions. However, it has some downsides too. 

What are the disadvantages of PayPal?

  • Because PayPal is utilized globally, it is susceptible to additional cyberattacks. This includes the risk of identity theft.
  • PayPal now allows you to keep your log-in credentials on electronic devices. Anyone can simply access your PayPal account and your financial data if your smartphone is stolen.

Credit Cards

Credit cards are widely used options to pay at local stores without even carrying money. One can even pay for online purchases with the use of credit cards. Credit cards also provide a lot of features & offers. Let’s have a look at them: 

Features of Credit Cards:

  • Credit cards are very common ways to pay.
  • There is a fraud protection guarantee for most credit cards, which ensures that the cardholder will be compensated for any fraudulent purchases on their card.
  • Combining microchipping, PIN codes, and CVV makes your credit card safer.
  • Using a credit card to make a purchase in the United States is usually free of additional charges.
  • When you use a rewards credit card to make a purchase, you can earn points, miles, or cashback.

Credit cards are great online and offline payment options, but they still have some downsides, which leave gaps for problems to the cardholders.

Downsides of Credit Cards:

  • Credit card data can be sold on the black market for a lot of money. If that data is stolen, it can be used to buy things both online and offline.
  • Online shopping can be a pain when you have to enter your credit card information again and again.
  • Some credit and debit cards may charge you a fee when you buy something from a store in another country.

So, is it better to use a credit card or PayPal?

After checking the pros and cons of PayPal & credit cards, we can say that PayPal offers more features & better security encryption. Moreover, PayPal can be used in a lot of countries without paying any charges for usage. 

Apart from this, PayPal does not show your credit card data to the seller while making payment, which makes the transaction secure. 

So Yes, PayPal is a better option & the credit card has slightly fewer features & security encryption than PayPal.

Read Also: Can You Link a Credit Card to Cash App

Is it better to pay by Card or PayPal?

Because the protections, fees, and even rewards are comparable, the decision comes down to convenience. Actually, when paying online through PayPal, you don’t have to enter your details again and again like doing it on credit cards. 

Moreover, if you put your credit card detail on the seller’s website, it is more susceptible to fraud; however, it is not the case in PayPal. 

Even in offline payments, you can pay through PayPal easily & you can even receive money from others. 

So Yes, PayPal is a better option to pay than credit cards. 

Does PayPal save your credit card?

Yes, PayPal saves your credit card information for easy & fast payments on third-party websites or apps. However, PayPal does not show credit card numbers or bank account information during a transaction, which could happen if you use your credit card elsewhere.

PayPal has a strong protection plan for buyers, and it follows the Payment Card Industry Data Security Standard (PCI DSS), which credit card companies also use to protect users’ data and prevent theft and fraud.

Read Also: Negative Balance on Credit Card

Bottom Line

Paypal Vs Credit Card: Which Is Better to Use and Why? PayPal has come out as a better option rather than credit cards. It offers faster payments, better protections, fewer fees for payments outside the country & even provides you the option to receive money. 

We hope this article was helpful and informative for you. Please let us know your thoughts & suggestions in the comments below!

Thank you for reading!