Why Is It Safe To Make Financial Transactions On PayPal?

“Yes, we keep all your payment details safe. When you send a payment using PayPal, the recipient doesn’t receive sensitive details such as your credit card or bank account number. This way, you don’t have to worry about paying people you don’t know using this platform.”- This is what PayPal has to say on its website for the clients.

I won’t disagree on this one because PayPal consists of more than 286 million active accounts in the second quarter of 2019. It represents a total of 17% year-on-year growth in the market. Thus, there must be something about PayPal that persuades people to trust this platform for online transactions. Yes, PayPal is safe for sellers and buyers only if they follow the right security protocols while making online transactions. Let’s see how.

1. How Is PayPal Safe For Users?

PayPal encompasses a service known as PayPal Purchase Protection, which assists any user if there is a problem. You can make use of this feature when the seller doesn’t deliver an item as promised by him/her or delivers the wrong product.

In that case, PayPal will arrange for a full refund. This platform offers similar ‘backstop’ programs to secure individuals or businesses who sell products online through this platform. Now, let’s check out what PayPal does to safeguard your data and save your sensitive details from any fraud artists.

a. PayPal Safety For Buyers

PayPal is both secured as well as encrypted. Thus, it offers a safe user experience to buyers. Check out the other factors that make PayPal safe for buyers.

b. Secure digital connection

Buyers need to have a safe digital connection when they use PayPal for online transactions. This is one of the most key data protection features that prevent fraudsters from hacking your PayPal account information.

c. Secure data servers

PayPal uses advanced data servers that keep a constant tab on your browser. The data servers alert the buyer if it finds that you are not using a recent and updated encryption technology. The servers also analyze and monitor the data stored on your computer server and let you know if the computer is not connected to the Internet.

d. Financial rewards

The best thing about PayPal is that it offers financial rewards to cybersecurity experts and computer security officials if they identify any breaches or vulnerabilities in the data defense system of this platform. Buyers can make online transactions on PayPal safely since brilliant cybersecurity experts keep a strict watch on the defense system of PayPal.

All in all, buyers need not worry about much when they pay online through PayPal. The high-end data security tools and features of PayPal make sure your bank details are secured.

e. PayPal Safety For Sellers

PayPal has the same data protection features for sellers as well. Thus, PayPal sellers have the liberty to enjoy a safe and secure transaction process. Speaking of PayPal sellers, they usually have to worry more about the transaction and dispute issues.

Buyers can dispute transactions based on multiple reasons and the sellers may not be able to prove their innocence most of the time. Say you have paid for tuition assignment help at a company on PayPal. But, you never received the assignment. In that case, you can ask for a refund and your seller won’t be able to disprove your claim.

Sellers can protect themselves from a fraudulent transaction and dispute policy only if they can prove their innocence. You can prove the buyer’s claim wrong if you ship the goods to verified and credible destinations. You also need to show proof of the delivery message usually sent by the delivery systems.

It is usually suggested that PayPal sellers must get a signature from the buyer after the item has been delivered. The signature could be proof that your product was received by the right person and was in good condition.

f. PayPal Safety Greater Than Bank and Credit Cards

PayPal users consider the use of this platform to be safer than using a bank account or a check to make transactions. Don’t be so surprised. Here are the reasons that make PayPal relatively safer than banks, checks, and credit cards.

Storage– The financial data of every PayPal user is usually stored in an online vault. It is not easy for hackers and con artists to break the virtual vault and launder your money. The same can’t be guaranteed in the case of credit cards or bank accounts.

Compromise– It takes only a few minutes for hackers to compromise with the paper checks. Once they get a hold of the client’s bank account number, it is easier for them to crack into his/her account and cause severe financial loss. The “vault” on PayPal is encrypted with an advanced data defense algorithm.

Payback protection– Buyers can ask for payback protection on PayPal if they do not get the products they have ordered. You can ask for protection if you are dissatisfied with the products or services received. You can’t do that at banks, can you?

PayPal offers an advanced level of data security to its users. But, buyers should also update their software on all their digital devices to keep the data hackers away from your sensitive details. It is also better if you could use this platform with your cellular internet connection and not any public WiFi.

2. Data Safety Measures Taken by PayPal

PayPal uses three key security measures to make sure your data is secure and safe. Still, ask yourself if this platform is safe or not. Then check out these fantastic data safety features offered by PayPal to its users.

a. Email confirmation

You will get an email every time you issue or receive a payment on PayPal. Thus, you can always contact PayPal if you receive mail about a transaction that wasn’t made by you. It prevents hackers from ‘hotwiring’ your account.

b. PayPal security keys

Every time you switch on this app, it asks you to enter a code that will be sent to your smartphone. You will get the code on your registered smartphone number. Therefore, it’s only you who can get access to your PayPal account unless your phone gets stolen.

c. Data encryption

All digital transactions are online-exclusive. This brings forth different safeguards such as TLS protocols, GDP, and key pinning. As soon as you log in, the platform will detect if your connection is TLS 1.0 or higher. The platform will also check if your browser is capable of handling HTTPS connections.

Apart from these features, PayPal also uses an extra security layer known as Key Pinning. This makes sure your browser is interacting with a legit PayPal server. Key Pinning prevents hackers from intercepting data in transit and redirecting you to a cloned website. All in all, PayPal consists of a slew of security measures that makes transactions safe for both buyers as well as sellers.

Helpful Resources:

1. Why is Cybersecurity Important For Enterprises?

2. 5 Website Security Tips Every Employee Should Know

3. Get VPS Hosting For Your Websites For Better Results

4. Top Ten Blockchain Applications That Are Transforming Industries

5. 6 of the Best Wireless Security Cameras You Can Get

6. How to Protect WebSites Against Attackers or Hackers by using “X-Security Headers”