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You can also remove stored payment methods through your Account Details.
The system is as secure as storing any other payment method on Steam.
If it comes down to that, I'd rather have the security, hands down, no question. I canceled the auto-pay subscription on Paypal, so now we'll have to see if that means I have to fill out the basic info page for no reason now, in addition to the final password fill-out on Paypal which I want.
steam has its own refund system, which you have to use. NO payment provider ever is authorised to do "refunds" initiated by the customer.