With the growth of Fintech, the number of payment options online has risen exponentially in recent years. However, there seems to be a daily occurrence of major companies leaking sensitive data, selling data, or mining their own user data for profit.
On the flip side of this, criminals are shifting their focus more online with and credit card fraud, identity theft and authorised push payment fraud have all seen massive growth in recent years.
So when it comes to making a payment online, it is always best to stick with a recognised company to process your payments.
Paypal has always been one of the most popular payments methods, and Luke Holmes from RouletteSites.org lists the best PayPal casino sites. Paypal offers another level of protection compared to using your card with the hundreds of different card processors.
Visa vs MasterCard
In the UK at least, the choice is generally Visa or MasterCard, and these two companies are accepted globally and almost any store with card payments will happily accept them.
As far as security goes, there generally isn't much different, both these companies offer zero fraud liability which means fraudulent transactions will not be your fault.
Debit cards issued by Visa or MasterCard may be covered under their zero fraud liability policies, but only when the transactions are processed on their networks. In the UK we have chargebacks which if you can link the payment amount to a receipt you can request a refund.
When you use credit on a credit card it will likely always be processed by Visa or MasterCard.
For debit, if you pay on PIN it is likely that it won’t be processed by Visa or MasterCard and therefore you will not always get zero fraud liability
Debit or Credit Card?
One way to protect yourself with purchases is to use a credit card which offers more comprehensive cover on both Visa and Mastercard.
One of the best ways to look at a credit card fraud is that it is not your money being stolen but the card issuer, so they have more incentive to resolve the problem. Even if the card issuer challenged your fraud claim, you haven't lost any money while the matter is being resolved. You've simply lost your ability to use credit on that account. If the fraud involves your debit card, however, the money being stolen comes directly out of your bank account.
In the UK, Under Section 75 of the Consumer Credit Act, credit cards must provide protection for purchases above £100 and below £30,000.
Section 75 is also a UK law only, different countries will have different legal protections but this is something you need to find out yourself.
Debit cards don’t offer this protection, which is one reason why it can be a good idea to pay for items with your credit card instead.
Many people prefer to use a debit card for payments, and in this case, you should be careful about what website you use and the card processor they use.
Paypal Payments vs Card Processor
So we know that credit cards are best for secure payments, but Paypal can add another layer of protection, or improve protection for debit card payments.
PayPal has a 180-day dispute policy allowing you to dispute any transaction on your account for 6-months. When you raise a claim you and the seller will have 20 days to work things out.
PayPal disputes can cover you is you don’t receive a product or service, if the item is different to what was sold, if it was damaged in shipping, and if it was counterfeit.
For card processors, you will be reliant on the protections built into debit and credit card, and then also reliant on the quality of the card processor itself.
In general, you should be safe with big well-known companies like WorldPay, Stripe, 2checkout, Authorize.Net and others. However, if the card payment is processed on site it is not always easily to identify who it processing the payment, nor do many people think to check. If the website you are using is new and intrusted, you can never be too sure if they are even passing the payment to a card provider, or just collecting your card details themselves for fraud, whereas being redirected the official PayPal page guarantees it is them that is processing the payment.
The vast majority of payments done online are completed successfully without issue, and it is unlikely a well-known site would deliberately expose you to fraud.
However, with the frequency of hacks, data breaches, data misuse and online fraud attempts it is always prudent to make sure you are as protected as possible and using Paypal is one of the most secure ways to make payments for online casinos and other transactions.