Will PayPal Still Be The Leading Payment Method In 2020?

Will PayPal Still Be The Leading Payment Method In 2020?
December 13, 2019
https://www.techshout.com/internet/2019/13/will-paypal-still-be-the-leading-payment-method-in-2020/

 

I guess PayPal is a good payment option when compared to creditcards, because of all of the website skimming that's going on.

https://www.instart.com/blog/how-magecart-skimming-attacks-work

 

+1
As the article says

Code:

What Makes PayPal Special?
As a system of online payment, PayPal is simple, efficient, and safe.

and if you want to waste 3 minutes of your life then read it, but it's just another journo justifying their existence with a waste of space article.

 

" 'Tis the Season" for e-mail that solicits political contributions. If it's someone I support AND they accept PayPal, I contribute. Otherwise -- not.

By the way, I get a goodly number lot of fake emails, allegedly from PayPal, citing case numbers and the immediate need for me to sign in & deal with it. Most of it is so obvious a fake that I don't even bother to check the source code.

 

Don't forget to send the fake emails to ....... Forward the entire email to spoof@paypal.com.

 

Oh ho -- I shall henceforth do so.

 

BTW, I recently used my creditcard to pay for stuff, but Mastercard didn't ask me for any verification, how the heck is this possible? So if someone had access to my creditcard info they could have used it? Or do they somehow verify that this Mastercard is registered to the given home address or what?

Over here in Europe we don't use creditcards that much, so perhaps someone from the US can explain it. No wonder that PayPal and so called debit cards are much more popular in Europe. At least there is some verification with these systems when buying stuff online. The major banks use a system called iDEAL.

https://en.wikipedia.org/wiki/IDEAL

 

I won't use a debit card online. If you get robbed it is much harder and longer to get your money back, if you do. I have had fraudulent charges on my credit card and after a brief investigation they cancelled the charges. They do send me a verification email if the charge is a large enough amount. I am unsure of what that amount is.

 

Oh yeah, I forgot that this is one of the advantages of creditcards. But I simply always make sure that I only buy stuff from well known webshops. But I was shocked to see that on certain websites they don't perform any creditcard verification, you simply type in your creditcard info and you're good to go, very weird. Now I understand why this web skimming stuff is such a big deal. Apparently you don't need to proof that you're the actual owner of the creditcard, what a joke.

 

Stripe has a tendency to do this as a payment processor. I've seen sites where all you enter is the CC number and the Exp. date and it processes the charge. Overall there seems to be a real lack of verification for all payment processing. Most places would rather risk that the buyer is fraudulent than lose the sale. In most cases the burden of dealing with it falls on the card owner.

 

That's the thing, not in Europe where we use iDEAL. With this system you will always have to physically own the debit card and it will always redirect you to your banking website plus you need to enter a 2FA code generated by hardware token, which is the cardreader. At least this is how it works on desktop PC's, not sure how it works on mobile phones since I don't use them to buy stuff online.

 

I have an Amazon Credit Card (CC) because of the 5% cash back. It's good ONLY at Amazon so it's protected by Amazon's login process.

I also have a Visa CC but never use it online. If I pay a bill, it's done through PayPal. If a website doesn't accept PayPal, they will never see a penny of my $$$.

 

According to Wikipedia it’s Dutch (only?):

https://en.wikipedia.org/wiki/IDEAL

Do people in Europe, outside The Netherlands, actually use this?

 

I believe most European countries have an equivalent.

 

Good point, it's indeed only used in Holland. But I'm guessing that in Europe you have similar systems like from GoCardless which is about the same as iDEAL. The point is that with these systems there is always payment verification since you are redirected to your bank.

So before approving the transaction you will at least need to fill in your PIN code, both on desktops and mobile phones. This way it doesn't matter if hackers steal creditcard data as seen in the second link. The current online creditcard system as used mostly in the US is absolutely insane.

https://gocardless.com/solutions/instant-bank-pay/ (scroll to ''how it works'')
https://www.bleepingcomputer.com/ne...loses-25-years-long-credit-card-theft-breach/

 

No argument there.

 

I can't believe that after 25 years, creditcards are still unsafe to be used for paying on the web. But then again, on many online banking sites they aren't even using 2FA, I recently visited American Express and E-Trade, I couldn't find any extra login protection, insane stuff.

 

It will likely never be safe. 2FA is not an ultimate solution. They are talking about 3FA now. Bad guys operate faster. They have no limits or restrictions.
https://www.techtarget.com/searchsecurity/definition/three-factor-authentication-3FA

 

To clarify, I was talking about paying with creditcards and this could be easily fixed as seen by the iDEAL and GoCardless systems. With this system you need to have access to someone's debitcard or PIN code. All other stuff that can be skimmed by hackers like card and CVV number don't matter. So creditcards will never be safe as long as they stick to the old system from the 90's. PayPal is of course also safer since you need access to the PayPal account, similar to iDEAL.

 

Not familiar with those. I've heard claims that retailers would rather risk fraud than lose a sale by making it too complicated to purchase.

 

Definitely insane.

 

I think this might be the best explanation. Actually, creditcard companies did try to beef up security with stuff like 3D Secure and virtual cards but it's not widespread apparently.

https://www.techfunnel.com/fintech/3d-secure/
https://www.cnet.com/personal-finance/credit-cards/best-virtual-credit-card/

 

Here is what you need to know about PayPal's Inactivity Fee
Nov 16, 2022
https://www.ghacks.net/2022/11/16/here-is-what-you-need-to-know-about-paypals-inactivity-fee/

 

They have to be kidding me right? So even if I don't have any money on my PayPal account, they will still charge me, I guess as soon as I transfer money? Good luck with that, this might cost them quite some customers.

 

One log in to your PayPal account or one transaction per 12 months is enough to avoid an inactivity fee (or even your account to be closed).
https://www.paypal.com/re/smarthelp/article/what-is-the-inactivity-fee---faq4427
Nevertheless, this doesn't make this any more fun, nor PayPal more likable.
On the other hand, I pay for having a bank account and credit card, so I can hardly expect something like PayPal to be free without any restrictions.