Understand this one idea: PayPal IS a national bank.
As such, their security is probably more up-to-date and better than the local bank that issued your credit card to you to begin with !! When you sign up for PayPal, they tie your account to either a credit card OR a bank account. By signing up for PayPal using your credit card you are ADDING security to your credit card. When you use PayPal to make a payment, the seller does not see your credit card number
. That means the seller cannot come back at a later date and make additional charges. That's the fear of using a credit card over the internet. So using PayPal adds to your security.
In my state (Georgia) using a credit card gives me 90 days to refute any charges. So the only time I want to use my credit card directly
is when buying an appliance or service where I might later want my money refunded should the product or service be faulty.
Most of the "horror stories" circulating on the internet about PayPal are from their startup days, when they were part of eBay
. All that's over. I've been a member now for 10 years and had zero issues.
If you are a small business owner, PayPal offers credit card services via your smart phone by manual
number entry, or card reader services using a Four Square reader. I have a friend that runs his entire business this way, and he has zero issues as well.
Hope this helps.