When purchasing online, which is better: send-only PayPal Philippines account or credit card?

If you still need a valid credit card to use in your PayPal Philippines account, which then is better when purchasing online: using your send-only PayPal account or paying direct with your credit card?

PayPal Philippines account holders find themselves in this dilemma after discovering that the only thing they can do with their PayPal account is purchase online and still, can only do so if they attach a valid credit card to their account. (For a list of functions you can and cannot do with your PayPal Philippines account, read the "How to open a PayPal Philippines account" article.)

If this is the case, isn't it cheaper, easier, and better to simply use a credit card to make an online purchase? Well, not necessarily. Below we list the Pros and Cons of using a send-only PayPal Philippines account as opposed to making a direct online purchase with your credit card.

• PROs

Easier to buy in eBay and from PayPal-only sellers
A lot of eBay sellers prefer to get paid only by PayPal so with your PayPal Philippines account, it's now easier for you to buy in eBay and you also get more product choices.

Easier to get chargeback when scammed
PayPal is notorious for chargebacks and refunds but this also works to your advantage in case you were scammed (i.e., you did not receive the product your paid for, etc.). Just file a Dispute Complaint in PayPal and provide the details of the transaction. It's just a matter of days before your funds will be credited back to your account. Some credit card companies, in contrast, do not offer refunds even if you were scammed. Even if they do, it might take days, weeks, or months before you can get your funds back.

Less risk of having your credit card hacked
Because you use your credit card in conjunction with your PayPal account, you lessen the risk of having your credit card hacked. Compare this to directly making a purchase with your credit card, where you open up all your card and personal details to the seller.

• CONs

No credit card, no PayPal account
Your PayPal Philippines account is useless if you don't have a valid credit card. And the credit card should be in your name too or in the name of the person owning the PayPal account. You can't use your mom's credit card details in your own PayPal account.

More charges, more expensive
You pay more when you use your PayPal account to purchase online, especially if the product you are purchasing is priced in a different currency. This is because PayPal first converts the price to dollars using their own exchange rate, then charges this dollar amount to your credit card. If you think the charges would be way more than what you would incur had you used your credit card, better not to use PayPal to purchase online. 

Anything else you can think of? Join the discussion in the "Finally, PayPal Philippines is here!" thread in the PMT Forum.