In many parts of the world, online payments are now commonplace. It is undeniable how convenient it is to pay online rather than in person when paying bills or just doing some online shopping. What are the safest methods of making payments online, though, considering the risk that hackers and fraudsters could steal your credentials?

There are several ways to pay for things online, including credit cards, digital wallets, PayPal, and others. But which ones are the safest?

The best techniques for safe internet payments are typically these:

PayPal. 

When it comes to online payments and shopping, PayPal is regarded as one of the safest systems.

Pros

• Safety. PayPal uses secure socket layer (SSL) technology with 128-bit encryption to ensure secure data transmission.
• Security. Your danger of data breaches is decreased because it does not share your financial information with retailers.
• security for both buyers and sellers. PayPal provides buyer and seller safety and aids in resolving problems with online purchases. Chargebacks are available, and it offers protection against unlawful purchases.
• Customer identification. It uses two-factor authentication (2FA) on its platform, which means it will send you a one-time code on an authenticator app that you must enter to complete the login process. This adds an extra layer of protection.
• Convenience. It is well-liked on many different web sites.
• numerous ways to pay. It is compatible with debit cards, bank accounts, and credit cards.

Cons

• Fees. PayPal levies charges for business transactions.
• breaches of data. Data breaches at the corporation have happened before, and PayPal scams are not unheard of. If you decide to stop using PayPal as a payment option, you can terminate your account at any time.
• Account restrictions. If PayPal notices suspicious activity, your account may be temporarily frozen or restricted.
• Hold periods. In some circumstances, PayPal can decide to keep the money you received, rendering it inaccessible to you for a while.

Credit card. 

Another well-known, safe, and fraud-resistant online payment option is a credit card.

Pros

• Systems for detecting fraud. The majority of banks and credit card firms keep an eye out for suspect patterns in transactional behavior and may block your card to halt a transaction if they find one. You can also let them know if you see any erroneous charges on your card so they can look into it and compensate you.
• Chargeback options. If you did not receive the things you paid for, if they differ from what you were told they would be, or if billing problems happened, credit card issuers often provide a chargeback option.
• Liability for fraudulent transactions is minimal or nonexistent. Most credit card companies either cap your responsibility at a minimal amount or don’t hold you liable if your card is stolen and used without your consent.

Cons

• Not anonymous. Making anonymous transactions is not possible because banks offer credit cards.
• accumulating debt. When using credit cards, there is a risk of overspending and subsequent debt accumulation.
• safety concerns. When entering your credit card information online, you should exercise caution and make sure the website is secure.
• charges for interest. You will be charged interest if you keep a balance on your credit card.
• Fees. Some credit cards may charge fees, especially for foreign transactions.

Debit cards are excellent for limiting your spending.

Pros

• Budgeted spending. Overspending is avoided when you have a set amount on your account.
• Zero debt. When you have a fixed budget as opposed to using a credit card, you’ll be less inclined to make impulsive purchases. This method of payment prevents debt accumulation.
• No interest is incurred. Since you are using your own money when you use a debit card, interest is not applied. Additionally, if your card is lost or stolen, the thief will be unable to spend more money than is available in the account.

Cons

• Limited dispute resolution. buyer protection and dispute resolution are less strong.
• fewer alternatives for legal action. When using a debit card to make a transaction, the money is immediately deducted from your account, which limits your choices if the merchant was dishonest. Refunds can take longer as well.

Prepaid card. 

A prepaid card is comparable to a debit card, however it provides greater privacy when making online purchases.

Pros

• Privacy. You don’t have to give any personal information when buying a prepaid card in person, therefore your purchase data won’t be associated with you.
• Don’t need a bank account. A prepaid card can be purchased with cash in a retailer. You can buy it without a bank account.

Cons

• Not completely private. In order to register and activate some cards intended for use abroad, you may need to provide some personal information, such as your name, address, and/or contact information.
• Fraud. To avoid being duped, make sure you are purchasing it from a reputable source.
• local dispute settlement. Prepaid cards either provide no buyer protection at all or very little.
• Limited use. Prepaid cards are not accepted by all online merchants and service providers, including hotels and auto rentals.

Digital wallets:

Digital wallets are characterized by their convenience because they allow for online, in-app, and in-person contactless transactions. The most well-known and trustworthy digital wallets are Samsung Pay, Apple Pay, and Google Pay.

Pros

• swift and simple. You can shop online with only a few clicks after creating your digital wallet with your personal information and avoiding continually entering your payment information. Your device stores your credit card information, enabling you to make purchases with it by merely confirming your identification (with a fingerprint or face scan).
• Secure. Your credit card number is hidden from the vendor; just the transaction ID is visible.
• Numerous ways to pay. Your digital wallet can be connected to a variety of payment methods, including bank accounts, debit cards, and credit cards.
• P2P and in-person transactions. P2P payments are supported by many digital wallets, making it simple to send money to loved ones. They also make it easier for you to convert currencies and make overseas payments. For in-store transactions, you can also utilize the digital wallet app on your smartphone.
• Encryption. To prevent hackers from intercepting your payment information or compromising it during transactions, it is tokenized and encrypted.

Cons

• Limited acceptance. The biggest drawback of digital wallets is the low number of online merchants that accept them.

Apps for mobile payment

Digital wallets and mobile payment applications are quite similar, however mobile payment apps are considerably more practical for sending money to friends and family.

Pros

• Simple to use. Apps for mobile payments are simple and easy to use.
• Convenient. Money is not necessary. For splitting invoices and distributing payments appropriately, it is tremendously convenient.
• Quick payouts. With only a few taps on your smartphone, mobile payment apps enable you to rapidly send and receive payments from your social contacts.
• Versatile. While some mobile payment apps require you to link your bank account, others let you keep an in-app amount.
• Optional physical cards. A few mobile payment apps provide actual debit cards that may be used at ATMs and in retailers. To avoid scams like the Venmo scam, you should use caution while utilizing mobile payment apps given the surge in cybercrime.

Cons

• Restricted acceptance. Not all businesses and service providers accept payments from mobile devices.
• Fees. For instant withdrawals, some apps charge a fee.
• Public feed. Some consumers may be put off from using mobile payment apps by the ability to view their friends’ payment histories.

Cryptocurrencies

Digital currency, sometimes known as cryptocurrency, is entirely digital and one of the most private methods of internet payment.

Pros

• Private. Transactions involving cryptocurrencies are associated with digital addresses rather than actual people.
• Decentralized. Cryptocurrencies are not under the control of a single organization or authority, thus there is no single point of vulnerability.
• Secure. Advanced cryptography is used by cryptocurrencies to protect financial transactions.

Cons

• Technical knowledge. Understanding how cryptocurrency operates and navigating cryptocurrency exchanges require a certain amount of experience.
• no central government. Due to the lack of a centralized authority and defined regulations, it is up to users to protect their passwords and only do business with reputable merchants because it is very difficult to get your cash back. A cryptocurrency transaction can also be impossible to undo.
• Limited acceptance. Only a small number of online stores and platforms allow cryptocurrency payments.