Tesco Bank credit cards - rates, benefits and more
Read our complete guide to Tesco Bank credit cards, including interest rates, benefits, features, fees and more.
Love a little online shopping? If you’re a fan of buying online, you’ll need to know the best way to pay.
Here in the UK, there are a few different payment options available at checkout (although it depends on the retailer). Two of the most popular are PayPal and credit cards, along with debit cards of course.
In this guide, we’ll be looking at PayPal vs. credit cards, to see which is the best choice to pay for your online purchase. We’ll run through pros and cons, and compare the two on security, fees, buyer protection and much more.
We’ll also show you a great alternative for making online and real-world purchases in multiple countries and currencies - the Wise card from the money services provider Wise.
First up, we have PayPal, the popular online payment service. Let’s dive straight into PayPal pros and cons.
Pros:
Cons:
Now, let’s give credit cards the same treatment. Here are the main pros and cons to consider before using a credit card to shop online.
Pros:
Cons:
Another thing to bear in mind - if you want to shop in a different country or currency, you’ll need to choose the right credit card for spending abroad. Some are great for overseas spending, others not so much.
📚 Read more: Virtual debit cards you can open in the UK |
---|
To help you make up your mind, here’s a full comparison of Paypal vs. credit cards on things like fees, security, limits and buyer protection:
Apple Pay | PayPal | |
---|---|---|
Market share | Used by 69% of mobile wallet users⁴ | Used by 31% of mobile wallet users⁴ |
Availability | iOS users only | All users (age 18+) |
Fees | None | None for domestic transactions (inc. paying in-store) 5% fee for international transactions³ |
Limits | None - although some retailers may have £100 contactless limit | None |
Security | Payments completed with Face ID or Touch ID | Uses data encryption and has Buyer Protection policies⁵ |
Privacy | Uses tokenisation so card details aren’t shared with merchants⁶ | Protects data with encryption and secure servers⁶ |
Buyer protection | Payment protection provided by card issuer | Buyer and Fraud Protection policies⁵ |
Customer support | Apple Support website and phone support⁷ | PayPal Resolution Centre, message and phone support⁸ |
Payment types | Online shopping In-person (app) | Online shopping In-person (app) Send and receive payments |
Here are some tips to keep you safe while shopping online:
Want to shop online in your choice of 40+ currencies? And how about spending like a local in 150+ countries? The Wise card could be just what you’re looking for.
Open a Wise account online and you can order your own contactless Wise card or get it as a virtual card.
It’s an international debit card that can be used worldwide, including online. Whenever you spend in a different currency, the card automatically converts the currency at the mid-market exchange rate – with no margin added on top.
You’ll only pay a small fee* for a currency conversion, or it’s free if you already have the currency in your Wise account. There are no commission charges, foreign transaction fees or other hidden costs.
So which is the best choice for shopping online - PayPal or a credit card? It may all depend on what options are available with each particular retailer, and which credit card you have.
But both offer secure payments and buyer protection, which should give you some peace of mind when shopping online.
Just remember to follow our tips for safe online shopping. If unsure of a particular website, it could be safer to steer clear until you can do some further research.
Sources used for this article:
Sources checked on 14-Nov-2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Read our complete guide to Tesco Bank credit cards, including interest rates, benefits, features, fees and more.
Read our guide to using an Aqua card abroad, including fees, limits and everything else you need to know.
Darren is a former professional boxer, and now boxing coach, who fell victim to a marketplace scam when he thought he’d found his dream car: “I’ve always had...
Read our guide to using a Nationwide credit card abroad, including fees, limits and everything else you need to know.
Read our guide to using a Tesco credit card abroad, including fees, limits and everything else you need to know.
What’s the cheapest way to exchange currency in the UK? Read our guide to explore your options and learn how to avoid currency conversion fees.