How Paypal Helps Keep Online eCommerce Safe

Some who are new to the world of online buying and selling might not be aware of the services which are available that can help assist in the process. This article is not meant to be a commercial for Paypal, but rather an explanation of why the model of their payment method makes sense from a security standpoint.
The problem. Doing business on the Internet has its inherent risks. Chiefly is the supplying of one’s credit card number over the Internet and having that card number stored in merchant’s databases. This opens the door to many avenues of fraud and theft of account numbers which places card holders at risk. It also costs millions and millions of dollars annually to businesses and the companies that are required to investigate and prosecute these illegal acts.
The background. Paypal was started in 2000 as a result of a couple of companies interested in online payment systems. The idea caught on quickly with users because of the ease of using just their email address in sending and receiving money. Auction giant Ebay noticed a rise in the need for financial transactions related to online sales and after months of trying to do it on their own, finally gave up and realized that Paypal had become the defacto standard and bought the company.
The solutions. Paypal has an advantage because of the way financial transactions are handled. Once you sign up for a Paypal account, you can make payments and receive money on just your email address alone. This adds an extra layer of security to online commerce.
Google now has a similar service called Google Checkout, but the nod still goes to Paypal in the amount of services provided and flexibility in helping consumers make purchases on the Internet. For example, you can obtain a Paypal debit card or even a MasterCard that is tied to you Paypal account. This provides you the secure avenue to handle all of your financial transactions online in an insulated way.
In other words, you do not have to compromise any other credit card numbers or accounts in using a Paypal account. Yes, you do need to tie your Paypal account to an existing checking account for back up, but that, too, can be set up as a totally separate account from your main checking account.
In the online world that we live in, there cannot be too much security in keeping your money safe. A solid answer like Paypal has and will continue to be a popular way of paying for items on the Internet as long as they do not stray from their mission. It is proof positive that a little innovation can go a long way in serving customers needs.