Gift cards are an insecure form of payment. Gift cards offer very little in the form of fraud protections for the consumer.
If someone where to steal my credit card number, it isn't a big deal (comparatively not as big of a deal). I am protected from fraudulent purchases. It is a bit of a hassle, of course. I'd obviously like it if nobody ever stole my credit card number (and thus far nobody ever has). But the process of reporting fraudulent purchases and having it resolved is fairly straight forward. In many jurisdictions there are laws to ensure that the credit card holder will have zero liability for fraudulent purchases. So if my credit card number is ever stolen, I am reasonably sure that everything will be okay in the end.
If someone were to steal my gift card... I probably should consider that money gone forever. The chances I'll ever see that money again are fairly low.
If you go to Steam and view their information about their gift cards, they have a whole page dedicated to Steam Wallet Gift Card scams:
(I can't post any links right now. I guess new forum users can't post links right away. But if you Google "Steam Wallet Gift Card Scam" you will find the web page.)
If you are the victim of gift card fraud, maybe you can get a refund if the thief hasn't already redeemed the gift card. Maybes and ifs. No guarantees. None at all.
I know using your credit card online can sometimes be worrisome, but it is a more secure way to transact online than gift cards. If something does happens, you'll be thankful for your zero liability credit card fraud protections. And using PayPal will a credit card can add an extra layer to keep your payment information safe online.
Post edited December 21, 2017 by SuntanIronMan