According to a recent research carried out by the Auriemma Consulting Group (ACG), credit cards account for 49 percent of online purchases while payment methods such as PayPal now account for over 20 percent of online purchases.
When asked what reasons determine them to use credit cards over other online payment methods, 36 percent of consumers have indicated that purchases are more secure when made via credit cards while 33 percent have mentioned as primary reason the ability to earn rewards on purchases. Furthermore, 16 percent of consumers have stated that they prefer to use cards because of the available credit on their account while 7 percent of consumers have replied that the card has a good interest rate.
According to Section 75 of the Consumer Credit Act, card issuers are equally liable if something goes wrong for purchases over GBP 100 (and less than GBP 30,000). This is one of the primary reasons why credit cards are considered more secure than other payment types. PayPal also offers a similar buyer protection scheme, making rewards the key differentiator against credit cards emerging payment types.
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