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Why Use PayPal Linked With Bank Account Instead of Credit Card for Online Shopping

PayPal is a well known service that allows people to send and receive money, bind credit cards and bank account and use them to shop online and in some stores without giving other payment information. Using PayPal is convenient because of its safety (you are not going to digit your credit card number while doing online shopping) and because it allows easy checkout without the need of typing information multiple times.

The PayPal home page

The PayPal home page

Some comparisons between paying online with PayPal and with your credit card.

Paying with PayPalPaying with credit card


Strong (your payment information is not sent to the merchant while doing online shopping).

Strong as long as you shop on safe websites and not store your credit card data within your account (unless you are really sure the website is very safe).

Purchase Protection

PayPal protects the customer from eventual frauds or issues by refunding transactions.

You are usually protected, but maybe eventual claims require more time than those you may file with PayPal.


You have your personal data already stored within the PayPal account, no need to type them again while doing online shopping.

You have to type your personal data each time you make a purchase unless the website provides the ability to register for an account and save all the information for future purchases.

Payment methods

You can choose among your credit card, your banking account or PayPal balance, so that you may have more flexibility.

Only by typing credit card data.

Why PayPal Is Convenient To Use

Using PayPal gives the advantage of being able to pay in million of online shops and even in some stores without the need of using a credit card. With PayPal you essentially have a digital wallet account where you can load a balance and add your credit cards and bank accounts as alternative payment methods. By doing this, even if you want to pay with your card, you don’t have to put your payment information each time you make an online purchase: this means more safety and a fast shopping experience.

Why Linking Bank Account To PayPal

While binding debit and credit cards to PayPal is a common practice, it is less known the feature that allows to link bank accounts. By doing this you may be able to use PayPal for online shopping without limits, with your money taken from your bank through direct debit (the same technology that makes it possibile to automatically pay bills) after some days. There are some good reasons why you may link your bank account to your digital wallet:

  • In case of issues or wrong transactions, banks in many countries allow to easily revoke a direct debit operation so that you can get back your money (even if errors in these transactions are not so common);
  • If you are used to do online shopping with a credit card, this generally means reducing your monthly available plafond. By taking your money off your bank account you can have more free plafond on your card so that you may have more availability for other needs. Plus, less plafond used means often improving your credit score, as percentage of credit used is something that may affect it in case you spend much and always arrive at the end of the month with low remaining plafond;
  • Linking PayPal with a banking account means being essentially free from eventual limitations that cards may have: you may want to keep certain daily and monthly limits for an additional safety while using PayPal for online shopping and not risking to reach these limits. You may also not want to worry about removing and linking again your card to PayPal whenever it expires or you lose it: in all these situations, using your bank accounts means less concerns.
A credit card

A credit card

Linking your banking account to PayPal means you should protect even more your digital wallet so that you do not risk to lose all your money in case somebody manages to violate your account. If you decide to use your bank account with PayPal, it is a good practice to choose a strong password and enable the two step verification, so that there is an additional layer of security that is similar to what already ensured by online banking services. This security measure is still recommended for everyone having a PayPal account, as losing money is something that has to be prevented in any situation, but surely even more important in case you decide to link your bank account, so that you can enjoy all the advantages of doing this without being much concerned about safety of this practice.

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This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2021 Alessio Ganci

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