5 safe ways to pay online that offer added security

Using the internet to shop and pay bills is nothing new. And as time goes by, online payment use continues to become even more widespread. Examples of these payment methods include credit cards, where you enter your payment details at checkout, and digital wallets.

But while they offer speed and convenience, online payment services may cause concern about security risks. That’s why it’s important to understand how different payment methods protect your information online. Continue reading to learn about some safe options for paying online.

What you’ll learn:

• Credit cards, virtual cards, digital wallets, PazeSM and ACH transfers allow you to shop or pay bills online.

• With some of these types of payments, you type your card details into a payment platform that processes your information. Sometimes the payment information is stored, so you’ll want to check security features.

• Credit cards generally have fraud detection systems and unauthorized charge liability coverage, so you’re more protected from unauthorized card transactions when using them. You’ll also enjoy added security when the credit card account is linked to a virtual card, digital wallet or Paze.

• Debit cards may not be as safe for online payments as credit cards because they are directly linked to your bank account and don’t offer the same level of fraud liability protection.

According to a 2024 McKinsey Digital Payments Consumer Survey, nine out of 10 Americans now use some sort of digital payment method. Here are some popular online payment options that offer convenience along with security features that can help you shop online with more confidence.

Credit cards generally have built-in security features that help make them a safer online payment method. For instance, secure websites use encryption to scramble your card information. This method makes it harder for anyone to steal your credit card number after you type it in. And if someone does access your account, it may trigger your card issuer’s fraud detection system.

Even if an unauthorized purchase goes through, you probably have zero-liability protections against fraud. All the major card networks—Visa®, Mastercard®, Discover® and American Express®—offer $0 liability for unauthorized credit card payments. That means you’re usually not held responsible if someone uses your card without your authorization, subject to the applicable zero-liability policy’s terms.

Most card issuers also offer this benefit, including Capital One. The key here is that you have to monitor your credit card account and promptly report fraud to your card issuer. 

These built-in consumer protections are what make credit cards safer than debit cards for online transactions. 

A virtual card provides a randomly generated card number that replaces your actual credit card number and is linked to your credit card account. Virtual card numbers help make online purchases safer because the merchant doesn’t receive your actual card number. This added layer of security is just one of many benefits of using virtual cards for online shopping. They also make the checkout process easier since you don’t need to have your physical card on hand.

If you’re a Capital One cardholder you can access your virtual card through the Capital One Mobile app or by shopping online on Google Chrome or in Android apps using Google Pay™. Or you can create virtual cards by downloading the Eno browser extension. 

A digital wallet is an electronic version of your physical wallet that allows you to pay for things online without using a physical card number. You can use these on your desktop computer, laptop or mobile device, and they often can be used to make in-person payments as well.

Popular digital wallets you may have heard of include:

• PayPal®

• Google Pay

• Samsung Pay®

• Apple Pay®

Digital wallets encrypt your financial details using a process called tokenization, which replaces your actual card number with a random number, which may help protect your actual card number from being compromised.

Digital wallets also may require authentication before you make a purchase. For instance, the app might ask for a PIN or might require biometric authentication. That just means the wallet may scan your fingerprint or face before authorizing a transaction. If your smartphone somehow ends up in the wrong hands, all of these security measures can help keep thieves from using your digital wallet.

Paze is an online checkout option available on participating merchants’ websites offered by major financial institutions such as Capital One. Similar to other digital wallets, Paze allows you to choose your desired debit or credit card at checkout without having to enter your card number on the website. And for added security, it doesn’t share your actual card number with merchants. But unlike other digital wallets, Paze doesn’t require a separate app or account that you have to add cards to.

To check out with Paze, all you do is choose Paze as your payment option and enter the email address associated with your Capital One account, and your eligible cards will automatically show as payment options to choose from.

The Automated Clearing House (ACH) is a secure network that moves money between banks in the U.S.

ACH transfers fall into two categories: direct deposits and direct debits. For instance, you might receive paychecks by direct deposit from your employer. And you might pay a bill online with a direct debit from your bank account. In both cases, the money moves through the ACH network and clears within a few business days. Your banking details are encrypted during the transfer, making it harder for anyone to steal your information.

Keep in mind that a debit card—whether you enter the number manually or access it through a digital wallet or other payment method—may not be as safe an option as a credit card. 

In addition to the risk a debit card presents by being directly linked to your bank account, it also lacks the same fraud liability protections credit cards have. For instance, if your debit card number ended up in the wrong hands and was used fraudulently, you must report it within two days of your statement being sent to avoid being responsible for up to $500 of unauthorized charges. You could even be responsible for more if you report the fraudulent charges 60 days or more after the statement is issued.

If you decide to shop or pay bills online, it’s important to keep your information safe. Credit cards, virtual cards, digital wallets and bank transfers all come with security features that can help protect your money and identity. Different online payment methods come with different security features, so consider what works best for you before deciding which method to use.

Credit cards are at the center of many payment methods and have several layers of protection. For easy access to virtual cards from Capital One, download the Capital One Mobile app today.