More and more consumers are choosing to buy online rather than go out to shop in stores. Convenient, easy, and fast, internet shopping is quickly becoming “the” way to shop. Whether you’re new at making online purchases or a seasoned buyer, it’s worthwhile to review the different (and new) payment methods that are available. Here are some of the payment methods used for internet purchases and a brief description of each.
1. PayPal
Originally affiliated with eBay, PayPal is one of the safest ways to buy online. Using only your email address, you can send and/or receive payments to or from anyone, and you don’t have to reveal your bank or credit card information to the seller or consumer. However, not all online merchants accept PayPal (although this is changing as PayPal gains popularity).
2. Credit cards
This is the most popular and common method of payment online. While no method is foolproof, there is legal protection for credit card users who buy items online, and it is fast and easy to use a credit card. Nearly all merchants will accept this form of payment.
3. Paper options such as money orders and checks
While paper options may seem like the purchasing method least likely to result in fraud, in reality the risks inherent in paper payments are actually greater. There is no recourse if someone simply takes your check or money order and never sends you the item you bought. Paper options are still valid, however, especially for those consumers who like to “see” what they are really spending.
4. Debit cards
While many consumers view debit cards as superior to credit cards (no monthly bill to pay), they are inferior with regard to consumer protection. The protective laws for credit card fraud simply don’t apply to debit cards. Nonetheless, debit cards are quick, easy, and do not involve high interest rates or monthly payments. And because the popularity of debit cards is growing, laws are being extended to include debit users.
5. Smartcards
Some major credit card companies such as American Express and Discover will issue smartcards to their customers, which are basically temporary, pre-paid credit card numbers for each online purchase. Some credit card companies ask the customer to re-enter a different password for each purchase rather than issue a new card number. You may need a smartcard adapter for this method of payment, which plugs into the USB port of your computer. Such an adaptor can be purchased from the credit card company or from some electronics stores.
The world of online shopping is ever-expanding, and innovations for making the consumer-seller relationship smoother, safer, and more convenient are constantly underway. Stay informed, shop safely, and enjoy the convenience of shopping from home.
