There will always be, even the slightest risk, of paying online. As much as the technology being advanced, more people are learning about it, that is why computer hackers are more prevalent nowadays. People can get your personal and payment information and use it to purchase online or withdraw cash. The good news is, there are a couple of ways to reduce the risk of unauthorized charges. It is essential to know the best payment method for you and every situation.
Using a credit card, debit card, or an online payment service like PayPal are the common ways of paying online. Depending on your purchase, one might be more appropriate than the other.
Pros: using a credit card is the most common way of shopping online. Banks are continuously modifying their ways to make their credit card services much safer and hack-proof. Fraud protection is reliable, and getting your charges reversed is pretty simple. Just call your card issuer and report your fraudulent charge.
Cons: Getting a credit card is not always a quick and easy process. Well, depending on your bank, there are others who offer a one-day credit card issuance. Getting your credit card stolen is also one of the unfortunate things that can happen. You have to report it to your bank, block your existing card, and apply for a new credit card number (and a new card). This means you also have to update all your billing information.
Pros: If you don’t want to risk racking up your deck, this one is right for you. With debit cards, you only spend the money that you have. It is an inexpensive way to obtain funds from your checking account. You also don’t need to wait and get approved and pay annual fees.
Cons: Since debit cards are directly linked to your bank account, funds come out of your checking account immediately. So when someone uses our debit card without your permission, it reflects on your bank account immediately. There are fraud protections available for debit cards, but it’s not going to be quick and easy compared to the credit card.
Pros: Paypal is one of the most commonly used third-party payment provider. When using this service, you keep your bank account information in one place only instead of entering it in every transaction that you make online. This adds to its security and lessening the risk of fraudulent charges.
Cons: Repeatedly disputing charges unsuccessfully can result in further investigation and while this is ongoing, your account may be held frozen. Thus, you can’t make any transaction. Your account may even be closed or worse, you can get banned from using the service.