The decision to pay your web hosting bill with a credit card or PayPal comes down to your personal choice. If you buy web hosting from a new web host or any unfamiliar business than it may be better to pay with PayPal. If you are buying web hosting from a known company than you may decide its better to pay with a credit card.
Paying with PayPal
The benefits of paying with PayPal is that you do not have to reveal your credit card information to your web host. This comes in handy with you are conducting a transaction with a relativity new web host or any business you may not trust fully. PayPal can act as a financial buffer between your credit card details and the new web host.
The only downside to paying with PayPal instead of a credit card is that any dispute or issues that arise from the transaction has to be taken up with PayPal and not your credit card issuing bank.
Using your credit card instead
You may decide to use your credit card instead of PayPal if you want to earn points or any other benefits that may come with your credit card. Another benefit of using a credit card is you receive an extra layer of protection if anything goes wrong or if your web host and you disagree about anything.
The only downside is when you go to cancel your account with your web host and they refuse to honor it and keep billing you. Another downside is some online merchants store the whole credit card numbers and the CVV (card verification value also known as card security code) number may also be stored. If there were to be any security breaches your credit card number may get leaked.