Difference Between PayPal and Credit Card

PayPal vs Credit Card

PayPal and credit card serve as the electronic alternative to traditional money transaction methods such as cheques and money orders. PayPal is an online payment service that offers increased security for online transactions. A credit card is like electronic money, you can purchase products or services without cash and to pay for them at a later date. It is not limited to online payment.

In this past pacing world, where time is money and no one has extra time, trend of online shopping is increasing day by day, for this; we can thank payment methods like PayPal and Credit Card. PayPal accounts are easily accessible for a common person, and if you have a bank account, you can always ask for credit card. These modes of payments help us in saving our money from thieves.

PayPal

PayPal is mode of payment, which facilitates payment on the internet, an alternative of traditional paper money. Nowadays, instead of paying through cheques and money orders for your shopping, you pay through PayPal. You need to have a PayPal account to get advantage of this facility; you can recharge this account from a bank account or credit card. You can issue a PayPal cheque or can directly transfer money to the recipient’s bank account. You have to pay a nominal fee if you use PayPal for commercial purposes. If you receive money in your PayPal account from other source, you have to pay some amount. PayPal operates nearly all over the world, but few countries have no access to PayPal. PayPal is applicable to 19 currencies in the world; user can send, receive and hold their funds in nearly 190 countries.

Credit Card

A small plastic card, which is acting as a mod of payment these days is called credit card. You can do shopping by making a promise to the bank that you will return this amount. There is a limit on your credit card, which draws a line for your debt, the amount that you can borrow from bank. Your bank can issue you a credit card, or you can have your account with a credit card company. Once you shop by using your credit cards, your bank will send you a monthly bill, for which the minimum amount, which is mentioned by bank, you have to pay by due date or you, can make the full payment to the bank, to avoid interest. Having a Credit Card makes things easy and you do not have to calculate your balance before making a transaction. You can purchase an item and then can pay back to your bank later.

Difference and Similarities of paying with paypal and credit card

Credit cards and PayPal are making things easy for a common person, as there is no fear of theft in both cases, which we usually face while carrying cash for shopping. You can use credit card for shopping even if money in your bank account is not sufficient, you will take debt or short-term loan from bank, which you can pay later. However, in case of PayPal, you can make payments only if you have money in your PayPal account. PayPal makes transference of money easy in different countries with very nominal charges, where as you can use credit card anywhere around the world, on those outlets where it is acceptable.

Conclusion

PayPal and credit card are making our lives easy, as transference of money around the globe is no more a problem. Facility in online shopping is another plus, which these services offer to their users.