Sunday, December 16, 2007

Credit cards lose their stand to PayPal

Internet-based payment services are gaining in popularity, capitalizing on the fear of identity theft and payment fraud with internet shoppers. Article By Andrea Herrera Playing the part of payment collector is eBay's PayPal. Companies like Gateway and Dell who typically lets customers purchase computers with their Visa or MasterCard credit cards. But with this new service, all payments go through a PayPal account. "People are always seeking ways and means of using different payment options, especially when making purchases online. Looking at this one in particular opened up a lot of opportunities," as was said by Dell's own marketing director David Clifton. An easier way to pay PayPal's payment service is more than likely to show up on a lot of unexpected and unusual web sites this holiday season. In mid-November, tools were released by PayPal that allow online shoppers to use its service nearly everywhere online, even in situations in which the online merchant does not accept PayPal. Internet shoppers can now download a tool bar that will allow them use of a temporary MasterCard number when making their transaction(s). Payments are then withdrawn from the user's PayPal-linked credit card or bank account. Payment is then processed through PayPal and the merchant never sees the buyers original account details. The system is designed to guard against identity theft and credit card fraud. Senior director of financial products at ebay, Chris George says, "PayPal is the safest way to pay online because we don't share your financial information".

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