Using PayPal - pros and cons

[razz]

It seems that everything is getting more complicated and the legal aspects are quite demanding.

I have been using PayPal because it kept my CC information at arm's length adding an extra level of security. PayPal has further updates with even more legal language.

Help me understand the pros and cons of using PayPal please. Any info to consider is appreciated.

[Tradd]

Does your credit card allow for the creation of one use numbers for security purposes that hide your actual CC number?

[SteveinMN]

I've been using PayPal more lately because I just don't want to put CC information (even "disposable" or limited cards) on a bunch of different Web sites. I've seen how people maintain IT security! In addition, recently two vendors let me know one of their service providers had a breach that exposed personal information (though, to anyone's knowledge, not CC numbers). Anyway, I figure PayPal has more of an investment in maintaining security than Acme Western Hats does, even if they've farmed out processing to some Web shopping plug-in. PayPal also was very convenient for ebay purchases (since they were part of the same company). I've also tried to narrow down electronic payments to people by using only PayPal, so I don't have to use Zelle or Venmo.

As someone who rarely sells things to be paid for through PayPal, little of the language in the updated terms of service apply to me. I might feel differently if I were a big-time ebay seller or routinely responsible for goods and services paid that way, but I haven't had an issue with the updated terms in quite some time. That, I guess, would be a con of using PayPal.

Another con is that I'm running a fair amount of business (well, not a lot but maybe 4-5 transactions a month these days) through one provider. If PayPal has a problem/breach/prolonged outage, I'm kinda outta luck since I'm not set up for any of the other big services. But that hasn't happened in the time I've used it. It could happen, but it could happen just as easily with another provider, so I'll just watch and hope that PayPal has their act together.

[Simone]

Reward dollars for using credit cards?

[Jane v2.0]

I've used Paypal for at least 20 years for most everything that isn't Amazon, and I've had no problems.
The pro for me is avoiding using my credit card for all and sundry, and there may be a con, but it hasn't registered.

[iris lilies]

There was a period where ebay and PayPal were mad at each other and got a divorce, if I remember correctly.That was a thorn in my side because I buy often of ebay as I like used, vintage, stuff. Their divorce had something to do with security or else it was sold as that, and that period had me contemplating cancelling my Paypal account.

Then the two made up and one bought the other (?) or something. Anyway, they got cozy again.

I’ve used PayPal for many years, maybe ? 15-17? No problems. Convenience is key for me. My password is stored in the clouds and it is a click or two to buy something.

[iris lilies]

Reward dollars for using credit cards?

oh! I never thought of that! Hmmm...

[razz]

My CC that I use regularly has 4% in rewards plus an additional year's warranty support. The difference is I have control over its use whenever it is used for a specific purpose and location.
PayPal is used whenever it is an option when dealing with an international organization. I did notice that the foreign exchange rate for Can/US transactions has increased from 3.5% to 4% in the recent update.

[Rogar]

Pretty much a ditto. I use PayPal for any non-Amazon internet transaction if it's offered. The fewer online places that have my CC info, the better.

[beckyliz]

Paypal is more secure than Cash App. I think Venmo might be owned by Paypal? At any rate, Visa has been putting a "soft hold" on transactions through Cash App - you have to respond by saying it's legit. If you don't, the transaction won't go through and your Visa debit or credit card will have a hold on it for other transactions elsewhere.

[ToomuchStuff]

The first item I bought from Ebay, was in 95 or 96, and was a 387 math coprocessor for $1. Paypal didn't exist then, and the postal money order protections, worked well for me (only ever had one issue, and when the inspectors showed up on their doorstep, very quick resolution). I was finally forced to use Paypal when the two merged and Ebay made it Paypal only, unless you had your own credit card processing (business). I am not fond of payment information, actually being stored anywhere online, and generally do "guest" checkouts, where it doesn't save it. On Amazon, I do the transaction, add the card, then delete the card once done.
I wish those disposable, one use CC numbers were available at my CU, but they aren't big enough.

Now, the only thing liked to Paypal is one bank account, which I had to do when I hit the "spending limit" while purchasing a several thousand dollar piece of equipment, for work (which went on to save our butts several times, since). I rarely use it for buying, and have never sold.

[catherine]

I love PayPal. I keep a balance. My son pays his rent to me through PayPal, and I don't bother transferring it to my bank account. I keep it there and then if I want to buy something and I'm given a choice to pay via PP, I use that instead of a CC. So easy!! I'm not someone with a huge "security gland" as Dave Ramsey would call it, so I don't get hyperworried about the security of stored CCs. I like the convenience of just a couple of clicks to get through a transaction.

[Jane v2.0]

I use it for political donations, donations to Wikipedia, animal charities, etc. I've used it to send money to friends, and also to various on-line retailers. Paypal seems to keep good records, as well.

[jp1]

For what it’s worth most, although definitely not all, but definitely the big guys like amazon, places that store your payment information use a process called tokenization. In a simplified nutshell what that means is that they don’t have your actual credit card info stored but instead have a random number stored that their payment processor uses to link back to your credit card. That random number is useless to anyone other than that specific merchant. If one is a frequent purchaser of stuff from a particular merchant it’s actually safer to have them store the card than it is to put it in new every time.

[razz]

For what it’s worth most, although definitely not all, but definitely the big guys like amazon, places that store your payment information use a process called tokenization. In a simplified nutshell what that means is that they don’t have your actual credit card info stored but instead have a random number stored that their payment processor uses to link back to your credit card. That random number is useless to anyone other than that specific merchant. If one is a frequent purchaser of stuff from a particular merchant it’s actually safer to have them store the card than it is to put it in new every time.

That is interesting to know. Thanks