PayPal does offer some consumer protections

Does PayPal offer consumer protections like credit cards do?

That’s what a Clark listener recently asked.

From Sona in Colorado: “For online purchases, I often use PayPal and they charge my credit card. Do I have the same protections through PayPal that I usually do with a credit card?”

Credit cards allow you to dispute fraudulent charges. It’s one of the reasons Clark never wants you to pay for things with a debit card. Some credit cards offer purchase protection or some type of insurance for rental cars and cellphones, for example.

So what about PayPal? “PayPal, interestingly enough, has very clear standards for protecting you with purchases,” Clark says, “even though as best I can tell they are not required in many cases to have the same protections you would have with a major credit card.

“It’s a big question mark if you pay with a credit card through PayPal if you have the credit card protections you normally would have. And PayPal short-circuited having to figure that out with your individual bank or credit union by giving you the ability to dispute on PayPal.”

PayPal doesn’t offer the same protections as a credit card. But it does offer more protection than some other payment apps (see: Zelle).