PayPal: You're Protected With Us (Unlike Card Users at Target)

PayPal: You're Protected With Us (Unlike Card Users at Target)PayPal has sent out an email to its users that’s takes a bit of a cheap shot at Target’s huge security breach, during which the accounts of 40 million credit and debit card users were stolen.
It’s also a bit of a swipe at Visa and MasterCard, the two payment network giants.
“Whether you are buying, selling or transferring money this holiday season, you are protected when you use PayPal,” the email sent out on Christmas Eve reads. “That’s because your financial information (like credit or debit card numbers) is securely stored and encrypted on our servers.”
Comparing PayPal’s security layers to the Target breach is somewhat of an “apples-vs-oranges” comparison. PayPal, an eBay company, is the dominant player in online payments, with 137 million account holders worldwide using credit cards or bank accounts as their conduit for making or receiving payments.
The Target incident did not affect Target.com or any e-commerce transactions. Its impact was felt only by in-store shoppers nationwide. The breach involved the theft of information stored on magnetic stripes on the backs of cards used at nearly all of Target’s stores.
Now here’s a bit of irony: “Payment Code” is a new technology unveiled by PayPal recently to enable shoppers to pay for goods using apps that generate QR Codes readable by merchants’ existing scanning devices at brick-and-mortar stores.
The Payment Code pits PayPal against the payment giants, Visa and MasterCard, which are trying to convince consumers that swiping cards at your local store’s checkout counter is easy and safe enough.
PayPal has worked out in-store deals with several big retailers, including Home Depot, and linked up with the network of Discover Financial Services to get Payment Code into millions more locations.
Now back to the Christmas Eve swipe at Visa and MasterCard. Here’s the full text of PayPal’s email:

In light of the recent data breach announced by Target on some credit and debit cards used at U.S. Target stores between Nov. 27 and Dec. 15, 2013 (Canadian stores and target.com were not affected), we want to be sure you know you have an extra layer of security with PayPal. Your PayPal account is continuously monitored by a team of dedicated security specialists, with a mission to identify suspicious activity and help protect you from fraudulent transactions.
Whether you are buying, selling or transferring money this holiday season, you are protected when you use PayPal. That’s because your financial information (like credit or debit card numbers) is securely stored and encrypted on our servers.
Here’s what you should know:
• Purchase Protection covers most of your eligible online purchases, on eBay or any other website, when you use PayPal, as well as when you make a payment on our website.
• Unless you see a transaction you don’t recognize, there is no need to call. Rest assured we are monitoring your account. If you see an unauthorized transaction, there are a few ways to contact us.
• If we see something that doesn’t look right, we will contact you immediately.
• Just to be sure, keep an eye on your PayPal account, bank account, and credit or debit cards for your own security. An easy way to help you do this is to download the PayPal App for on-the-go monitoring of your PayPal account.
Have a safe, happy holiday season and thank you for trusting PayPal.

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