Originally Posted by
jonnyb2
The transaction is not straight from your credit card to the merchant, instead you transfer the money into your paypal account first, for this reason if you have any problems you'd have to claim through paypal, which is a lengthy process, credit card companies on the other hand are swift in dealing with claims.
You don't transfer money with yur credit card into your paypal account. Where did you get this info? Paypal just serves as an intermediary for the transaction and charges fees to a merchant for it like any other credit card processing center or bank.