Why is it recomended to have a Credit Card registered with PayPal?

Ricochet J · 13 Mar 2008 at 17:39

I was doing some reading up before I open an eBay and PayPal account. I've read some definate do not's and some definate do's. One DO NOT was to not have a debit card registered with PayPal but rather a Credit Card.

The place I was reading this from didn't say why. It's a bit of a bummer as I don't have a Credit Card and don't want to open one up just for PayPal. Anyone know why a Credit Card is wise for PayPal? What downsides can I see if I put it on my Debit Card?

jackthezipper · 13 Mar 2008 at 17:41

Added Security

Ricochet J · 13 Mar 2008 at 17:42

jackthezipper said:
Added Security

Can you please explain how?

Glaucus · 13 Mar 2008 at 17:42

If you get stung you can claim bank on a credit card through your bank as you are protected. You can't with a debit card. Also do not ever set up direct debit for pay pal.

Ricochet J · 13 Mar 2008 at 17:44

Is there a place where I can read online the Do's and Do Not's of eBay and PayPal with explanations?

Thanks Acid Hell!

Edit: Does that mean if I list something on eBay and someone buys it, the money will go to the Credit Card account?

stoofa · 13 Mar 2008 at 17:46

Paypal is no different to any other "transaction" you make.
Using a debit card is akin to using cash.
If you buy something with a debit card and everything goes wrong then the card issuer will quite often wash hands.
With a credit card however the credit card company become joint libel for debts etc.
So if things go wrong your credit card company will help you out.

I never use my debit card for any online purchase over £100.
I always use the credit card and then a day later pay it off online.
It's similar to using debit in that the money will vanish from my bank account quickly, however I've got all the added protection of these purchases being credit card ones.

norm · 13 Mar 2008 at 17:47

PayPal recommend you pay everything by signing up your bank details. The reasons why are as follows:

1) They get access to your money for free, but they can still charge the recipient 3.4% for the transfer. If you used a credit card it costs PayPal ~2%.
2) They don't lose any money from chargebacks from credit card companies if a sale goes wrong due to fraud.
3) They can take money as and when they please (assuming you've set up a direct debit contract)

So you should always pay using a credit card because your provider will automatically give you insurance for purchases.

Biohazard · 13 Mar 2008 at 17:49

Its mad that consumers aren't covered with debit cards.

Ricochet J · 13 Mar 2008 at 17:50

Okay! Thanks! That's pretty clear cut! Cheers! I'll phone my bank and take their offer on their Credit Card.

daz · 13 Mar 2008 at 17:55

Biohazard said:
Its mad that consumers aren't covered with debit cards.

It's not their money, why should they care?

With a credit card, it is their money.

UnusualSuspect · 13 Mar 2008 at 18:00

I closed my PayPal account recently, I just don't trust it. Their security is my email address and password? What the hell..? Not at all secure if you ask me. At least with something like online banking, you have a code number, password and then a dropdown list of letters chosen at random from a secondary password. That makes me feel much safer.

No way. I had direct debit and my debit card on PayPal until I bought something for my nephew through there, then suddenly realised how relatively easy it would be to access it.