Multiple online payment methods are available, from PayPal to credit cards and digital wallets.
But what are the safest ones?

Generally, these are the best methods for secure online payments: PayPal. Safe and secure. Credit card. Well protected against fraudulent transactions. Debit card. Great for controlling your spending. Prepaid card. Provides a certain level of privacy. Digital wallets. Convenient and straightforward. Mobile payment apps. Great for paying friends and family. Cryptocurrencies. Offer a degree of privacy.
So let’s look at their pros and cons to see which payment methods suit your needs the best.

PayPal is considered one of the most secure services for sending and receiving money online and
online shopping.


Pros
Safety. PayPal ensures safe data transmission by using the{‘ ‘} secure socket layer (SSL) technology
with 128-bit encryption. Security. It does not share your financial information with merchants,
reducing the risk of data breaches. Buyer and seller protection. PayPal offers buyer and seller protection and
helps resolve online purchase issues. It provides protection against unauthorized transactions
and offers chargebacks. User authentication. It adds a layer of security by using{‘ ‘} two-factor authentication (2FA)
{‘ ‘}
on its platform on a web browser (not the app), which means it will send you a one-time code
on an authenticator app that you have to enter to complete the login process. Convenience. It is widely accepted across various online platforms. Multiple payment options. You can link credit cards, bank accounts, and debit
cards to it.
Cons
Fees. PayPal charges fees for commercial transactions. Data breaches. The company’s data has been breached in the past, and{‘ ‘} PayPal scams are not unheard of.
You can{‘ ‘} delete your PayPal account
{‘ ‘}
anytime if you no longer wish to use this payment method. Account restrictions. PayPal may freeze or limit your account for an extended
period of time if it detects suspicious activity. Hold periods. In some cases, PayPal may hold the funds you received, making
them unavailable to you for a certain period of time.

A credit card is another popular and secure online payment method that is well protected against
fraud.

Pros
Fraud detection systems. Most credit card companies and banks monitor
transactions for unusual patterns and might block your card to stop a transaction if they
notice something suspicious. You can also inform them if you notice fraudulent charges on your
card so they can investigate and reimburse you. Chargeback options. Credit card issuers typically offer a chargeback option
in the case you did not receive the goods you paid for, if they are different from what you
were led to believe they will be, or if billing errors occurred. Limited to zero liability for fraudulent transactions. If your card is stolen
and used without your permission, most credit card issuers either cap your liability at a
relatively low amount or don’t hold you responsible. For more information, check out our{‘ ‘} analysis of a stolen credit card database

.
Cons
Not anonymous. Banks issue credit cards, so it’s impossible to make anonymous
transactions. Debt accumulation. Overspending and resulting debt accumulation is a risk
when using credit cards. Security issues. You should be cautious about providing your credit card
details on websites and make sure the websites are secure. Interest charges. If you carry a balance on your credit card, it will incur
interest charges. Fees. Some credit cards may charge fees, especially for foreign transactions.

Debit cards are great for controlling how much you spend.

Pros
Controlled spending. A limited amount in your account prevents overspending. No debt. You’ll be less tempted to indulge in impulse purchases when you have
a limited amount of money, as opposed to shopping with a credit card. By paying this way, you
will not accumulate any debt. No interest charges. When you use a debit card, you are spending your own
money, so you will not be charged interest. And if you lose your card or it gets stolen, the
thief will not be able to spend more than is in the account.
Cons
Limited dispute resolution. Less robust dispute resolution and buyer
protection. Fewer options for recourse. When you pay for something with a debit card, the
money is immediately taken from your account, so you have fewer options if you have purchased
from a dishonest seller. Refunds may also be delayed.

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A prepaid card is similar to a debit card, but it offers more privacy than other ways to pay
online.


Pros
Privacy. When purchasing a prepaid card over the counter, you don’t need to
provide any personal information, so your purchase information will not be linked to you. Don’t need a bank account. You can buy a prepaid card in a store with cash.
You don’t need a bank account to purchase it.
Cons
Not completely private. Some cards designed for international transactions
may need registration and activation, which involves providing some personal information like
your name, address, and/or contact details. Some online merchants might store your shipping
address and online purchase history. Also, when you are shopping online, the website and
payment processor may log your IP address and location and link purchase history to you. Fraud. Make sure you are buying it from a reliable seller so you don’t get
scammed. Limited dispute resolution. Prepaid cards offer limited buyer protection or
none at all. Limited use. Some online retailers and service providers, such as hotels or
car rentals, do not accept prepaid cards.

Digital wallets are characterized by their convenience because they allow for online, in-app,
and in-person contactless transactions. Google Pay, Apple Pay, and Samsung Pay are the most
popular and reliable digital wallets.


Pros
Fast and easy. Once you set up your digital wallet with your information, you
can shop online with just a few clicks without repeatedly entering your payment details. Your
credit card information is stored on your device, allowing you to pay with it simply by
authenticating your identity (with a fingerprint or face scan). Secure. The seller does not see your credit card number, only the transaction
ID. Multiple payment options. You can link multiple payment methods to your
digital wallet, like credit cards, debit cards, and bank accounts. P2P and in-store payments. Many digital wallets support P2P payments, so you
can send money to friends and family with just a couple of clicks. They also facilitate
international payments and currency conversions, so you can shop globally. You can also use a
digital wallet on your smartphone for in-store purchases. Encryption. Your payment information is protected with encryption technology
and tokenization so that it can not be intercepted by{‘ ‘} hackers or compromised during
transactions.

Cons
Limited acceptance. The main downside to digital wallets is that few online
shops accept payments from them.

Mobile payment apps are very similar to digital wallets, but they are even more convenient for
sending money to friends and family. In the US, the most popular mobile payment apps are Venmo,
Cash App, and Zelle, and they are known for being quick and straightforward.


Pros
Easy to use. Mobile payment apps are straightforward and user-friendly. Convenient. You don’t need to have cash. It is incredibly convenient for
splitting bills and distributing the payments accordingly. Instant payments. Mobile payment apps let you send and receive payments
quickly from your social contacts with just a few taps on your smartphone. Versatile. Some mobile payment apps allow you to maintain a balance in the
app, while others need to be linked to your bank account. Optional physical cards. Some mobile payment apps offer physical debit cards
to use in stores and ATMs. However, with{‘ ‘} cybercrime on the rise, you should be
careful when using mobile payment apps to avoid scams such as{‘ ‘} Venmo scams.

Cons
Limited acceptance. Not all merchants and service providers accept mobile
payments. Fees. Some apps have fees for instant withdrawals. Public feed. Some mobile payment apps allow users to see their friend’s
payment history, which might discourage some users from using these apps.

Cryptocurrency, or digital currency, is fully digital and considered among the most private ways
to pay online.

Pros
Private. Cryptocurrency transactions are linked to digital addresses instead
of real-world identities. Decentralized. A single entity or government does not control
cryptocurrencies, so there is no central point of failure or attack. Secure. Cryptocurrencies use advanced cryptography to secure financial
transactions.

Cons
Technical knowledge. A certain level of expertise is needed to understand how
crypto works and navigate cryptocurrency exchanges. No central authority. It is very difficult to reclaim your coins because
there is no central authority or clear regulation, so it is up to the users to protect their
passwords and make sure they deal with reliable merchants. It may also be impossible to
reverse a crypto transaction. Limited acceptance. Relatively few merchants and online platforms accept
payments in cryptocurrencies.