Why PayPal is a good alternative to a credit card

Why PayPal is a good alternative to a credit card

Chances are you see PayPal come by regularly when you make an online purchase. Not only is it an easy way to pay online, but it also offers numerous other benefits. In fact, the payment platform makes a credit card practically unnecessary. How that works, we explain to you in this article.

By no means everyone wants a credit card, for example because of the costs involved. PayPal is in that case a convenient free alternative. Moreover, there are many webshops where you can pay with the payment platform. How it works and what the pros and cons are, you can read below.

How does PayPal work?

To use the service, you need to create an account. Then you link your bank account number(s) to the payment platform. When paying online, instead of iDeal or a credit card, you choose PayPal. You then just need to log into your account. Choose the linked account you want to use and the payment will be successful in no time.

Every time you make an online payment through PayPal, the amount is debited from your linked bank account a few days later. It is also possible to transfer money to your PayPal account. When payments are made, that balance is drawn on first. Any remaining portion is taken from your bank account.

Why PayPal is a good alternative to a credit card

Paying with PayPal: the benefits

It is not always possible to pay online with your bank card using iDeal. If you want to book a hotel room or make an online purchase on an international site, chances are that your bank card is not supported. PayPal is often a great solution. So you can easily and quickly pay in many places where a debit card does not work.

Because you can add different bank cards (and credit cards), you can easily pay from your desired account. In addition, it is possible to transfer money to others or send a payment request. Also not unimportant: using the payment platform is completely free, as long as you do not pay in a foreign currency. Also, some online shops charge transaction fees when you pay via PayPal.

Another bonus is purchase protection. If you do not receive a product, is damaged, or does not match the description, you can open a dispute through PayPal, giving the seller a chance to solve the problem. If this doesn’t happen or you can’t resolve it together, you can file a claim. You will then be refunded the full purchase price.


Are there any drawbacks?

Although a gaggle of web shops support PayPal, there are also some where this is not the case. So it’s not a payment method you can literally turn on for everything. You should also keep in mind that since 2021 you pay inactivity fees if you don’t use your account for more than a year. The fee is 12 euros (or whatever your remaining balance is).

Because it takes several days for PayPal to debit the payment from your bank account, you may have less control over your money matters. If you make a lot of payments through the payment platform, you won’t see it reflected on your bank balance right away. If the amount is debited after a few days, you may be in for a shock! Although this is of course also the case with a credit card.

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