At present, there are multiple payment methods available for online purchasing, such as Debit Card, Bank Transfer, credit card, Google Checkout, PayPal and many more. In this case, customers can choose one way to buy things online based on their ultimate convenience.
As for industry of web hosting, however, PayPal and credit card are the most common payment channels. To figure out which one of them can promise the better level of security, money transfer efficiency and purchasing convenience, we have made a PayPal vs credit card comparison in the following.
About PayPal Payment Method
PayPal has been considered as the most convenient and ubiquitous virtual wallet for money transfer. At present, it serves for over 165 million active users among more than 235 markets.
In addition, this payment method is not supported by all the web hosting providers on the market. However, most quality and reliable web hosts must ensure this payment channel.
- PayPal does not require you to fill out tons of paperwork and pass the credit check. The money simply can be instantly transferred via a few clicks. As compared with many other standard payment methods, PayPal is pretty easy to use.
- You will not be charged for any setup fee, account cancellation fee and money transfer fees for each transaction. This means you do not have any basic cost even if you do not make any purchase.
- PayPal safeguards your information with a strict encryption system via the SSL protocol featuring the lengthy encryption key of 125 bits.
- There is a long list of rules and regulations your web hosts needs to comply with. If they fail to abide by all the rules, your hosting charges might be held for at least six months for investigations.
- Your PayPal account might be locked temporarily for many reasons, especially when the amount of money you are transferring via the system increases greatly.
- The support service of PayPal is poor. Even if you have someone to talk about the issue of your account or money, the representative may have no right to do something necessary for resolving your issue.
About Credit Card Payment Method
The credit card might be a must-have item for everyone nowadays. With it, you can carry out an online order with much ease, simply by entering the credit card number, expiration date and signature/CVV2 code in the billing information chart.
Unlike PayPal that might not be supported by your web hosts, this payment channel can be made use of by all the available hosting providers.
- Credit cards can be accepted almost anywhere at any time. This means you can use it for the hosting dealing whenever you want and wherever you are in.
- There are so many credit card providers that will give you the cash-back in a way of small gifts, gas, discounts on some stores, groceries and many more.
- It allows you to buy the item now and pay for it later. This can prevent you from draining your checking account.
- If you purchase using credit cards frequently and pay back the money timely, you can gain a good credit history, which has a great influence if you want to get a loan, rent an apartment or even get a job.
- The utilization of credit card may lead to the exposure of your identity and financial information.
- The interest rates and the annual fees are not cheap. If you miss a payment in time, you also need to face the penalty with a fat interest bill added into your regular expenses.
PayPal vs Credit Card on Purchasing Convenience
Without doubt, both PayPal and credit card achieve a high level of convenience for dealing with the web hosts. Here, let’s take BlueHost as an example.
After choosing the hosting package and entering your domain name, you can be processed to the billing information page automatically. By default, the billing method is credit card. Here, you simply need to enter your card number, choose your right expiring date and offer the CVV2 code. Then, click the submit button and get your purchase done.
If you want to pay from PayPal, you can click the More Payment Options link. After that, a PayPal button can be automatically showcased. Click that button that gets you to your PayPal account for finishing the payment.
PayPal vs Credit Card on Money Transfer Efficiency
Both of these two payment methods can guarantee an instant transfer for money. This means your web host can receive your hosting charge right after your place the order successfully. The only concern is that PayPal sometimes may require the web hosts to explain the source of funds if they receive a massive amount of money. If they cannot explain properly, their PayPal account will be frozen temporarily.
PayPal vs Credit Card on Payment Security
The security can be regarded as the top issue for online purchasing. In this case, both PayPal and credit card have paid much attention. However, when compare intensively, PayPal is the safer option.
The most effective method to prevent the identity theft is to keep your personal and financial information private. In this case, PayPal simply allows you to pay without your web host knowing your credit card number or bank account. Besides, PayPal adopts multiple advanced technologies to stop the fraudulent transactions.
As for credits cards, it is true that all the providers utilize the strict security systems to promise a risk-free money transfer. However, for the systematic account management, all of them will store the information of users, both commercially and personally. This simply increases the risk of identity theft if the criminals access their database containing the information of users.
Besides, if you forget to set a password for your card and choose a bad web host, you money might be deducted without your permission even if your account has been cancelled or expired.
Without doubt, security matters the most. Therefore, when purchasing the hosting solution, we highly recommend you to choose the PayPal payment. However, as not all the web hosts allow you to pay via PayPal, in the following, we have listed the top web hosts that support this payment method, and in the meanwhile, guarantee the high-quality hosting solution at cheap hosting charges.