Payments

Safe Online Payment Methods

ecommerce

We all shop online but we don’t often think of what can go wrong if our information ends up in the wrong hands or something goes wrong with the transaction. We rely on technology to work as it should and don’t usually think of what payment method we are using and how safe it is. To help you understand the pros and cons of each payment method we have created a short guide.

Debit Cards

The Pros: Using a debit card means you are using entirely your own money so you aren’t at risk of spending money you don’t necessarily have. There are no applications, credit approval issues or any unexpected fees. Usually with this type of card you have a zero liability agreement in place with your bank meaning you won’t be held accountable for any unauthorised charges made from your account.

The Cons: If your card is used without your permission, the money will come out of your account immediately and you might be in a vulnerable position financially where you can’t pay bills. All banks have fraud protection in place but this can take a couple of weeks to be resolved and for you to have the money returned to your account.

Credit Cards

The Pros: This card type is popular for online shopping as there is a lot of fraud protection in place with your bank and having charges reversed is a lot easier than with a debit card. No money of your own is being spent, it is all the banks own money so you don’t have to technically pay for anything. As long as you quickly report the fraudulent activity you have very limited liability for any fraudulent charges made.

The Cons: Credit Cards are just credit and not any of your own money so it can become quite addictive to use them in your everyday life to pay for bills and other purchases. However, the interest you have to pay can often become quite overwhelming and not worth the purchases you made.

Third Party Payment Services

The Pros: Services such as Apple pay, Google wallet and PayPal are very popular options in this category. They work very well because they give you protection through not providing websites with your account details but keeping it within their central databases. Using these services reduces your risk of hackers taking your information online. They often also have buyer protection too so that if your purchase doesn’t arrive you can put in a claim to get your money back.

The Cons: If you do have to put in a claim it can causes your account or others accounts to be temporarily frozen until the dispute is settled. This can go on for quite a while and if it becomes a regular occurrence your account may be permanently closed due to suspicious activity.