From Credit Cards To PayPal: Comparing The Security Of Online Payment Methods

When proceeding to checkout from an online store, there’s typically multiple payment options. It’s important to educate yourself on these to determine which is the most secure.

Wicked Reports examined consumer protection laws and other security measures to find how safe popular e-commerce payment methods are and how the risks compare.

Debit Cards

Consumers using a debit card for an online payment should become familiar with the Electronic Fund Transfer Act, which protects consumers from unauthorized/incorrect electronic fund transfers, incorrect receipts, and/or any bookkeeping errors in such transactions.

Credit cards fall under the purview of the Fair Credit Billing Act. Also known as the Truth in Lending Act, the FCBA limits the liability for unauthorized credit card transactions at $50. It’s meant to protect consumers from poor practices of the credit industry.

Credit Cards


PayPal is one of the most popular online payment systems around, and it follows specific measures to keep users secure. Security keys remain optional but are recommended, as they are a two-step authentication with a different PIN for each login.

Digital wallets provide two-factor authentication, encryption, and one-time-use PINs to keep payments safe. However, users should be sure to implement screen locks with strong passwords or biometric authentication on their phone.

Mobile Wallets

Buy Now, Pay Later Programs

Ever since the pandemic began, buy now, pay later programs—such as AfterPay, Affirm, and Klarna—have risen in popularity. Most of these require buyers to put down 25% of the total payment, and pay the rest in three installments over the course of six weeks.

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