As technology permeates every aspect of our lives in the modern era, so it is the security of online payments that is becoming increasingly important. The popularity of online shopping confirms how important it is to have reliable ways of making payments. To help every user to protect their money and personal information when shopping online, we suggest you read this article in detail. First of all, you will learn about the four most secure payment methods.To do this, we will consider each of them in detail, emphasize its main and characteristics. This will help you to make a reasonable choice in the future.

1. PIN-and chip-equipped bank cards

In today’s digital environment, bank cards with a chip and PIN are a very effective way to protect financial data. By utilising advanced encryption technologies, chip cards considerably lower the possibility of financial fraud. The main advantage of the chip is that it generates a unique transaction code for each transaction, making it hard to reuse and preventing the illegal copying of your card information—known as “skimming.”

How it works:

The chip on your card interacts with the device when you insert it into an ATM or payment terminal. Encryption technology protects sensitive data, like your credit card number and personal details. Normally, you have to enter your PIN in order to finish the transaction. By doing this, protection against unauthorised access is strengthened and one more level of authentication is added. This technology expedites the payment process and significantly improves transaction security, providing users with a more streamlined and secure experience.

Who it suits:

This payment option works well for people who frequently use their cards for internet or retail purchases. It is highly recommended for those who want to lower their risk of potential financial losses and want consistent protection against fraud. Because PIN and chip technologies offer dual security measures, users may be assured that their financial assets and personal information are secure.

2. Paying using a mobile device

Mobile payment systems such as Apple Pay and Google Pay employ tokenization technology to enhance the security of online payments. The process of tokenizing involves substituting private credit or debit card data with a safe digital version called a “token.” Due to their limited use, these tokens are worthless to scammers and significantly lower the possibility of financial data leaks.

How it works:

It’s simple and obvious to use mobile payment methods:

  1. Adding a Card: Initially, input your bank card details into the mobile app. Instead of this data, which is encrypted, a token is safely saved on your device.
  2. Pay for purchases: When you make a purchase through the app, the store does not receive your actual credit card information. Instead, it uses a token that is sent across secure servers and authorised by your bank. Payments may now be made more easily and securely at the payment terminal with only a tap or the display of your phone.

Who it suits:

This kind of payment is particularly appropriate for people who value the speed and portability of mobile devices in their daily life. If you’re a frequent shopper with a smartphone and want to reduce the hazards involved with using physical credit cards, mobile payments are perfect for you. They are a great choice for persons who frequently travel or do business overseas because they also make it easy to make payments without the need for currency exchange or additional fees.

3. Virtual disposable cards

Virtual payment security can be strengthened with virtual disposable cards. A distinct number is produced for each usage of these cards, which can be used for all or just some of the transactions. These numbers are void after usage, which greatly lowers the possibility of fraud and misuse of data. This method is particularly effective against man-in-the-middle attacks, where attackers can intercept or falsify bank data during a transaction.

How it works:

  1. Obtaining a virtual number: Through the online banking interface or the bank’s specialized application, users can create a virtual card. To do this, select the virtual card creation function. Then the system will show you a unique card number, expiration date, and CVV code.
  2. Use as payment: This unique card number is used for one or more online purchases. Once the transaction is completed or expires, the number becomes invalid and cannot be used again.

Who’s Eligible:

Virtual disposable cards are perfect for people who frequently transact large amounts of money online and want to optimise the security of their money and personal information. They are also beneficial for those exploring new online shops or services where trust in the merchant is yet to be built. Virtual cards simplify the safeguarding and verification of funds while minimizing the risks associated with data leaks. Furthermore, they work well for quick and safe transactions with foreign internet sellers, where security is especially important.

4. Electronic purses (PayPal, WebMoney)

E-wallets, like PayPal and WebMoney, are popular tools for managing virtual finances because of their ease of use and high level of security. One of the main advantages of e-wallets is the ability to execute financial transactions without divulging bank account numbers or credit card information to third parties. This significantly reduces the likelihood of fraud and data breaches. In addition, the majority of these platforms come with extra security features like buyer protection, which guarantees returns in the event that the ordered item is not delivered or does not live up to the customer’s expectations.

How it works:

  1. Registering and linking accounts: To link one or more bank cards or bank accounts to an e-wallet system, you must first create an account in the system of your choice. This data is kept in a safe environment and is encrypted.
  2. Transaction processing: Just enter your password and e-wallet login to complete payments or fund transfers. This method reduces the chance that fraudsters may get your personal information by eliminating the need to enter your credit card information for each purchase.

Who it’s suitable for:

This method is ideal for individuals who regularly shop internationally, as many e-wallets support multiple currencies and simplify the conversion process. Since it enables speedy and safe payments to various locations worldwide, it’s also a perfect choice for people who work with freelancers or hire remote contractors for services. Users enjoy e-wallets because of their ease of use, speed at which transactions may be completed, and ability to recover funds in the event of fraud.