Individuals use PayPal and many other apps to exchange money. PayPal works well for a no-contact exchange of funds. Many people use PayPal to shop online, send money to friends, and even for business payments. PayPal offers encryption to keep your information safe. With any online service that deals with money exchange, security measures must exist. Risks, however, always exist, as well. Other than security issues, PayPal users must also deal with buyer protection policies. If you sell items using PayPal for payment, buyers can find sneaky ways to get their money back from you.
Is PayPal Safe?
Yes, Paypal is safe to use. PayPal began serving the public in 1998 and is currently a publicly-traded company that owns popular services such as Venmo. The company has been around longer than most money exchange sites, giving them time to establish safety precautions and learn about online risks.
Your Personal Information
Paypal protects your information using a secure sockets layer (SSL). This includes 128-bit encryption. When you make a transaction, Paypal also checks the servers you use when processing a transaction. If your server does not meet the requirements, your transaction may not get completed. Information also gets stored in a single place. Credit card companies often store information in multiple locations. You can improve safety with your information by removing old phone numbers, email addresses, and debit cards.
Paypal uses the same security tactics as many credit card companies. This is called the Payment Card Industry Data Security Standard (PCI DSS). Since PayPal only processes transactions, your data doesn’t become visible to merchants. When using a credit card, you must enter your credit card information and often your zip code to make a purchase. One issue that can arise during a transaction involves a random third-party bank authorization. You can choose the friends and family option for money transfers to people you know well. Do not use the friends and family option for purchases, however. The buyer protection options do not cover friends and family transfers.
When shopping with PayPal, you have the option to dispute purchases. This option works well for buyers, however, it can cause problems for sellers. eBay used PayPal in the past for transactions and buyers had the option to dispute transactions and get their money back. If you sell personal items on any site and accept PayPal payments, follow all the seller rules for that site. Small discrepancies can result in PayPal acting in favor of the buyer.
Paypal users may get a request for bank verification for some transactions. PayPal also does random verifications on their own that may disrupt the movement of your money. This can become frustrating if you need money transferred immediately to use for urgent situations.
Bank verifications through a third party can show up at any time, even if you normally transfer money with no issues. You can simply refuse the third-party verification prompt, which asks for your personal bank login information. If you refuse this action, you must send money in a different way, such as a debit card through the site. This often results in extra fees. To avoid problems with third-party verification, you can limit the number of transactions to other people made in a short period of time. Sudden transfers of large quantities may cause suspicion.
As with any online payment option, scammers find ways to get money from unsuspecting people. A secure website should not keep you from practicing extra safety when working with any online money transfer service. Scammers may ask for your PayPal information over the phone or in an email for you to verify a transaction. Never give them your information or agree to sign into any screen-sharing sites. PayPal does not operate this way.
Scammers also send emails duplicating the PayPal logo telling customers they have a payment when they do not. Do not click on anything in a PayPal email without checking your account first. Finally, turn on two-factor authentication and only sign into PayPal on your own devices.
PayPal works well for both personal and professional transactions. Many people use this platform to conduct business transactions for freelance work. You can expect some fees to support the safety of PayPal. Scams can happen on any site, however, PayPal has proper encryption measures in place to protect your data. You can also dispute any unknown or unsatisfactory transactions with Paypal on the website. Take the time to learn how to use PayPal safely and you should enjoy a positive user experience.