Safest Ways To Pay In 2023 And Beyond | Bankrate (2024)

Cybercrime is definitely on the rise, and many troubling criminal acts center around in-person and online payment methods as well as general identity theft. In fact, a 2022 study on identity fraud from Javelin Strategy & Research revealed that this type of fraud remains one of the fastest growing criminal enterprises to date, and that combined identity fraud scam losses amounted to $28 billion in 2021.

In December 2022, Nilson Report also forecasted that U.S. losses from card fraud will total $165.1 billion over the next ten years. Meanwhile, Insider Intelligence noted that “card-not-present” payments, including online transactions, make up the lion’s share of fraudulent transactions facilitated by credit cards each year.

But that doesn’t mean you can’t still do your best to ensure your purchases are secure when shopping in a store or browsing the web. The good news is, there are plenty of in-person and online payment methods that have the technology and features to keep your personal information safe.

Secure online payment methods

If you’re hoping to make your transactions as secure as possible when you shop online in 2023, consider the following online payment methods.

Credit cards

By and large, credit cards are easily the most secure and safe payment method to use when you shop online. Credit cards use online security features like encryption and fraud monitoring to keep your accounts and personal information safe. Most issuers also offer zero fraud liability to ensure you won’t be on the hook for a cent for fraudulent transactions charged to your credit card.

Beyond the zero fraud liability coverage credit cards offer, you can only be legally liable for up to $50 in fraudulent charges on a credit card due to the Fair Credit Billing Act (FCBA). This means that, even if a hacker or thief gets ahold of your credit card number, you won’t be on the hook for more than $50 in purchases they make, regardless of how much they spend.

ACH payments

Automated Clearing House (ACH) payments let you transfer funds directly from your checking account to another bank account. This payment network adheres to plenty of security features that keep your banking information safe, such as encryption and the implementation of access controls.

Stored payment credentials

According to the 2022 How We Pay Digitally study by PYMNTS, 80 percent of online shoppers used stored payment credentials in various online accounts in order to make online purchases throughout 2022. Meanwhile, consumers were more likely to pay for purchases with a stored debit card or credit card versus stored bank account information last year.

If you want purchases made with stored payment information to be more secure, you should set up a credit card with zero fraud liability as your preferred method of payment.

Secure in-person payment methods

Technology has also made in-person payments more secure than ever, especially for payments using a mobile device. The following in-person payment methods boast increased security features that help protect your personal information.

Credit cards with EMV chip technology

Where you once had to swipe your credit card to make an in-person payment, most credit cards today feature EMV chip technology instead of a magnetic strip. With EMV technology, the payment terminal reads your card for the unique, encrypted information transmitted by the chip on your card. Since the single-use encrypted information is different for each transaction, this technology helps to eliminate counterfeit fraud.

EMV technology has expanded rapidly over the last decade, both in the U.S. and around the world. According to standards body EMVCo, more than nine in 10 (91.4 percent) of card-present transactions worldwide were made using EMV-chip-enabled payment cards as of Q2 2022.

Credit cards with contactless payment

Contactless payments use the same technology as EMV chip and pin credit cards. With a credit card that allows contactless payments, you’ll hold your card above the payment terminal and the terminal will receive an encrypted, one-time use code for the transaction.

Before COVID-19 entered our lives in 2020, contactless payments were already on the rise. However, this trend has only increased since the start of the pandemic and continues to grow in popularity.

Payment apps

Payment apps like PayPal, Google Pay, Apple Pay and Facebook Pay let you store multiple payment methods in one place for convenience and security. With a payment app, you can benefit from features like multi-factor authentication, notifications and even facial or fingerprint recognition.

With Apple Pay, for example, you have to have a passcode on your device, but you can also set up Face ID or Touch ID. Apple Pay also doesn’t actually store or have access to your payment information, and they don’t retain any transaction information that can be tied back to you later on.

Payment methods to avoid

While every type of payment method has some disadvantages, debit cards are probably the riskiest form of payment. Debit cards do offer the convenience of a card, since you don’t have to carry cash around or write a check, but the funds you use are actually tied to your bank account.

Unlike credit cards that typically come with zero fraud liability and limit you to $50 in losses per the FCBA, debit cards only limit you to $50 in losses if you report the fraud to your account within two business days after you noticed it.

  • If you report fraud more than two business days but less than 60 calendar days after your statement is sent to you, you could be on the hook for up to $500 in fraudulent charges.
  • If you don’t report card fraud for 60 or more days after your statement is sent to you, you could lose “all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account,” according to the Federal Trade Commission (FTC).

Ultimately, this means making purchases with a debit card online or in-person could put your personal funds at risk.

Safest Ways To Pay In 2023 And Beyond | Bankrate (2024)

FAQs

What is the best payment method to not get scammed? ›

Secure online payment methods
  • Credit cards. By and large, credit cards are easily the most secure and safe payment method to use when you shop online. ...
  • ACH payments. ...
  • Stored payment credentials. ...
  • Credit cards with EMV chip technology. ...
  • Credit cards with contactless payment. ...
  • Payment apps.
Feb 11, 2023

What is the safest way of payment? ›

Debit and credit cards

This allows you to flag any suspicious payments before the funds are actually deducted from your account. You can make more secure payments with a debit card by using a prepaid card that you top up regularly.

What is the safest way to get paid? ›

What is the safest way to accept payment? Besides cash, a certified check is the safest way you can receive a payment to your business.

What is a more secure way to pay every day? ›

every day. With security built in to protect you before, during and after every payment, using Google Pay is safer than swiping your card or paying with cash.

Is Zelle safe to use with strangers? ›

Only Send Money to Those You Trust

With Zelle®, you can send money from your account to someone else's within minutes1. It's a great way to pay friends, family, your coworkers and almost anyone else you trust, but it shouldn't be used to pay strangers.

Is Venmo safe to use with strangers? ›

Use Venmo only with people you trust: If you use Venmo only with people you know and trust, you're unlikely to get scammed by a stranger. Avoid accepting unsolicited payments: You can do this by blocking unknown users who try to request you and canceling any unusual transactions.

Which type of payment is most trustworthy? ›

These are the safest payment methods
  • Credit cards. Credit cards remain one of the safest options for online purchases. ...
  • PayPal. For peer-to-peer transactions or when shopping on sites that accept it, PayPal is a wise choice. ...
  • Apple Pay/Google Pay. ...
  • Gift cards.
Oct 18, 2023

Is it safer to use debit card or ACH? ›

ACH payments are more secure than card payments. A clearinghouse must clear all ACH transactions, and they typically have uncompromising regulations. All account numbers stay confidential, and ACH transfers go directly from one bank to the next.

What is the most secure payment app? ›

Our Top 7 Picks
  • Google Pay. Best for Android Users. Jump To Details. ...
  • Cash App. Best for Buying Stocks and Bitcoin. ...
  • PayPal. Best for Shopping Online. ...
  • Zelle. Best for Instant Bank-to-Bank Transfers. ...
  • Apple Pay. Best for Purchases iOS and Mac Users. ...
  • Samsung Pay. Best for Contactless in-Store Purchases. ...
  • Venmo. Best for Paying Friends.

Is it safer to pay by check or credit card? ›

While debit cards and cash offer consumers limited benefits, using a credit card can help protect you against purchases that go awry. A credit card is guarded from fraudulent activity and some offer benefits like travel insurance and return protection.

Are checks safer than credit cards? ›

Checks don't offer the same protection as credit cards.

If a thief steals money from your checking account, you must report the fraud within 2 days, or you could be on the hook for up to $500 of the fraudulent transactions. And if you don't report the fraud within 60 days, you could be liable for every penny.

What is the most effective payment method? ›

Cards are still the most-used payment method, with American Express, Mastercard, Visa as large global card schemes. Even though they're recognized globally, other payment methods like online banking, direct debit, digital wallets, or Buy Now Pay Later (BNPL) are more common elsewhere.

Is it safer to pay by check or online? ›

You can often view your payment history online, which can be helpful if you need to dispute a charge or track your spending. It can be more secure than paying bills with a check, as your information is typically encrypted when you enter it online.

Does PayPal refund money if scammed? ›

You have 180 days from the payment date to open a dispute. In a dispute, you can message the seller through PayPal to try to resolve any issues. If you cannot resolve the dispute, you have 20 days to escalate the dispute to a claim. In a claim, we investigate the case and decide the outcome.

Is PayPal the safest way to pay? ›

Is PayPal safe for buyers? PayPal isn't just secured and encrypted for sellers — it's also a secure platform for buyers. PayPal works to ensure encrypted transactions occur on both ends, so neither party is likely to experience PayPal fraud or a scam.

Will PayPal refund money if scammed? ›

You have 180 days from the payment date to open a dispute. In a dispute, you can message the seller through PayPal to try to resolve any issues. If you cannot resolve the dispute, you have 20 days to escalate the dispute to a claim. In a claim, we investigate the case and decide the outcome.

Will Zelle refund money if scammed? ›

How to Get Your Money Back. Zelle is processing each scam claim they receive on a case-by-case basis. If you haven't already done so, file a claim directly with Zelle through their app or by phone (844-428-8542). You'll also need to file a claim with the bank or credit union your funds were taken.

Which is safer debit card or checking account? ›

Payments with a debit card are taken instantly from your checking account and shopping online comes with the added risk that your information may be stolen. Using a debit card opens up the possibility that the thief will gain access to the funds in your checking account.

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