{"id":352513,"date":"2016-04-04T10:42:01","date_gmt":"2016-04-04T15:42:01","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/consumer\/consumer-transactions\/paying-online-for-goods.html"},"modified":"2025-01-24T11:46:13","modified_gmt":"2025-01-24T16:46:13","slug":"paying-online-for-goods","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/paying-online-for-goods.html","title":{"rendered":"Online Payment Methods: Guide to Protect Yourself"},"content":{"rendered":"\n
\n

Online Payment Methods: Guide to Protect Yourself<\/h1>\n\n
\n
\n By Hannah Hilst<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Online payment methods differ from traditional in-person transactions, impacting both security and privacy. These processes involve sharing sensitive information, which can be vulnerable to hackers. Credit cards offer better fraud protection compared to debit cards, as laws like the Truth in Lending Act limit liability for unauthorized charges. Third-party payment services, such as PayPal and Apple Pay, provide additional security, but their fraud protection varies. It’s crucial to review the payment method’s security features and reputation before making a purchase.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Online shopping differs from in-person shopping in many ways. Instead of a point-of-sale register, you\u00a0pay on a checkout screen<\/a>. But the different payment processes can seriously affect your finances and privacy.<\/p>\n

Technology, security concerns, and consumer behavior all change rapidly. In turn,\u00a0online payment options evolve<\/a>\u00a0with them. You may wonder which option is the best payment method for your purchase.<\/p>\n

This article covers the legal and practical issues of\u00a0online payments<\/a>. Before your next purchase, learn more about your options and the laws governing e-commerce transactions.<\/p>\n

Start With Digital Security<\/h2>\n

When you pay for goods online, you must share sensitive information, including your billing address and payment information. Hackers and scammers try to access these details,\u00a0enabling identity theft<\/a>\u00a0and other fraud.<\/p>\n

That’s why checking whether your connection is secure before entering any payment information is safest.\u00a0Secure connections<\/a>\u00a0add a layer of encryption to prevent digital eavesdropping. If you do not have a secure connection, a third party may intercept the information you sent the seller.<\/p>\n

You can also check whether the seller is legitimate. Before proceeding, learn more about\u00a0protecting your information<\/a>\u00a0and\u00a0online shopping tips<\/a>.<\/p>\n

Are Debit Cards Safe for Online Payments?<\/h2>\n

No, typing your debit card information at checkout is usually a\u00a0high-risk action<\/a>. Debit card purchases allow the online seller to take the cost directly from your bank account. Merchants who accept debit and credit cards must follow\u00a0rigid security standards<\/a>. But they aren’t always effective.<\/p>\n

Debit card payments carry comparatively\u00a0weak fraud and theft safeguards<\/a>. Anyone using your debit card could withdraw funds from your checking account. They may continue to do so until you contact the bank to lock your card \u2014 or until your account runs out of money.<\/p>\n

Fortunately, debit cards aren’t your only option for online transactions. Other payment methods may offer higher security and legal protection against fraud.<\/p>\n

Addressing Debit Card Fraud Can Be Difficult<\/h3>\n

Federal law sets baseline rules around\u00a0debit card theft<\/a>. The\u00a0Electronic Fund Transfer Act<\/a>\u00a0puts you on a clock to detect theft and notify your bank as fast as possible. For example, you might only lose up to $50 in stolen money if you act within two days. But if you take three or more days to alert the bank, you’ll be liable for as much as $500. After 60 days, you’ll likely lose all the money the thieves stole.<\/p>\n

Banks may offer\u00a0zero-liability debit cards<\/a>, further protecting some funds according to the bank’s terms. Yet, unlike credit card companies, most banks typically don’t help you with theft disputes.<\/p>\n

Why Credit Cards Are a Safer Payment Method<\/h2>\n

Credit card payments are popular because consumer protection laws will give you better\u00a0remedies for fraud<\/a>. Some of the most common credit card issuers include American Express, Visa, and Mastercard.<\/p>\n

Credit and\u00a0debit card transactions<\/a>\u00a0look similar from a customer’s point of view. But, they involve different payment processes on the back end. This difference offers a buffer between you and thieves.<\/p>\n

With a\u00a0credit card purchase<\/a>, the seller charges the credit card company instead of your personal bank account. Then, the credit card company sends you a bill plus any applicable interest and fees. The seller does not get access to your bank account.<\/p>\n

Credit Card Fraud Protections<\/h3>\n

If thieves steal your credit card details, they can’t take cash from your bank account. They may rack up charges, but\u00a0consumer credit laws<\/a>\u00a0shield you from paying most of those bills.<\/p>\n

Under the\u00a0Truth in Lending Act<\/a>, you are only liable for fraudulent credit card charges up to $50. You are not responsible for paying any of the thieves’ debts after reporting they stole your credit card information.<\/p>\n

Credit cards also protect you against sellers who\u00a0fail to deliver merchandise<\/a>. Credit card companies often help with chargebacks against fraudulent merchants.<\/p>\n

Third-Party Online Payment Options<\/h2>\n

Some banks and third-party payment providers let you pay bills online. They advertise how their\u00a0encryption and authentication procedures<\/a>\u00a0can help restrict unauthorized access to your account.<\/p>\n

Online stores often accept payments through\u00a0third-party providers<\/a>\u00a0and digital wallets, such as:<\/p>\n