Safe ways to pay online and in store

Quick insights

These days, shoppers tend to have several options, whether they’re purchasing items online or in stores. With credit cards, debit cards, mobile wallets, payment apps and more, there are plenty of ways to pay vendors and friends alike. But regardless of which option you choose, payment security may be top of mind.  

Read on to learn more about ways to pay online and in store that provide security features to keep your information and accounts safe.

Secure payment features

The rise of digital technology has ushered in a variety of digital payment methods. Where checks, cash and credit cards were standard payment options for decades, digital wallets, payment apps and contactless payment systems have become more common—and in some places are outpacing more traditional options.

Many modern payment options provide security features to help keep your account info safe. Some common security features include:

In addition, when making payments online, you’ll want to ensure that the site you’re on is secure. Verifying the security of a site before entering your payment information can help protect you against fraud and theft of your account information. Trusted sites will often have an “https” (not “http”) in their URL.

Secure methods of online payment

There are many ways to make digital and online payments that provide built-in security features to keep your information secure. Common ones include:

1. Digital wallets

Digital wallets offer a modern way to pay online and often in stores. Digital wallets enable customers to save their credit or debit card on their mobile device to make payments online, in stores or in apps.

They often utilize encryption and tokenization to mask your card’s actual numbers during transactions. Digital wallets also often use multi-factor authentication, which requires additional verification to approve transactions.

2. Credit cards

Using credit cards to shop online offers many benefits to consumers, potentially including fraud protection. If your information is stolen, some credit card issuers offer fraud protection and may not hold you liable for unauthorized charges.

Virtual credit cards may provide a secure way to shop online as well. A virtual card is a digital representation of a traditional physical credit card.  Some virtual cards offer features like single-use transactions and tokenization as an added layer of protection when making purchases online. However, rules and functions vary by the card issuer (and not all card issuers provide virtual cards).

3. ACH payments

Automated Clearing House (ACH) payments are a method for direct money transfers between banks. They're regulated by the National Automated Clearing House Association (NACHA) and the Federal Reserve, which can potentially provide added protection if fraud occurs.

Using an ACH payment for online purchases requires you to enter your bank account and routing numbers—not the numbers on a debit or credit card. ACH payments may be more commonly used when making monthly reoccurring payments like your mortgage, utilities, car loans and some subscription services.

Secure methods of in store payments

Payment terminals vary by store. Some may accept various forms of digital payments, while others may not. Here are some digital ways to pay in store and their associated security features.

1. Contactless payments

Contactless payments are made by holding or tapping a credit or debit card near a payment terminal. Each transaction uses a unique token, so your actual card details are never shared with the merchant. This also avoids having to swipe your card at a payment terminal, which can be susceptible to fraudulent scanners and card readers.

Many digital wallets are also considered contactless payments when making in-store purchases. When using digital wallets in a store, you’ll select your payment option and hold your phone up to a card reader. Upon the payment terminal recognizing your mobile payment, you’ll typically be asked to verify the payment with a passcode or biometric scan before it goes through.

2. Chip-enabled credit and debit cards

Chip-enabled credit and debit cards are typically a more secure way to pay than traditional magnetic stripe cards. The chip creates a unique transaction code for each purchase, which can't be used again, making it difficult for fraudsters to duplicate the card. This method also avoids using the magnetic strip at the payment terminal.

3. Payment apps

Not all stores accept digital payment or cash apps, but those that do may provide another option for secure in-person payments. Many payment apps require biometric or multi-factor authentication before a transaction can proceed and utilize tokenization and encryption to process your payment info.

In summary

Whether you are paying online or in store, there are many payment methods that include built-in security features, like tokenization, multi-factor authentication and biometric data. These security features provide an added layer of security because they require additional verification before a payment can go through and may mask your account information.

Common forms of digital payments include mobile wallets, ACH payments and credit cards. In store, you may be able to use some digital payment methods—like mobile wallets—but it will be dependent on the merchant’s payment system. Using a chip-enabled card or contactless payment option may also provide an added layer of security when paying in a store.