PayPal helps keep your information as secure as possible-with automatic encryption for all of your sensitive information and email communications.
Here's how they do it:
On Your Computer: When you register or log in to PayPal, Paypal confirms that your browser is running Secure Socket Layer 3.0 (SSL) or higher, which gives you the maximum possible protection.
When Information is in Transit:
All of your information is protected by SSL, with an encryption key length of 168 bits-the highest level commercially available.
On Paypal Website Servers:
Your personal information is stored on Paypal servers and heavily guarded, both physically and electronically. And to give your credit card and bank numbers an extra layer of protection, Paypal does not directly connect their firewall-protected servers to the Internet.
There are many reasons that millions of people trust PayPal with their finances, and data encryption is one of the most important.
For more information, goto Paypal Security