The rise of cybercrime, including identity theft and fraudulent online payments, has made it crucial for people to protect their funds and personal information. In 2022, researchers estimated that bank card fraud losses in the US would reach $165.1 billion over the next ten years, with online transactions being a major contributor to fraudulent activity. However, there are several effective payment security solutions and secure online payment methods available that can protect your personal data.
One of the safest online payment methods is using a credit card, which actively uses online security features like encryption and fraud detection to safeguard account and personal information. The Fair Credit Billing Act (FCBA) limits the liability for fraudulent credit card charges to a maximum of $50, providing extra protection. Another secure option is Automated Clearing House (ACH) payments that enable secure money transfers between bank accounts. Using saved payment credentials from online accounts can also be secure, provided you use a fraud-protected credit card.
When it comes to in-person payments, modern technology has made them more secure than ever. For instance, credit cards now come with EMV chip technology, which is more effective in preventing fraud than magnetic stripes. Contactless payments that use similar encryption technology as credit cards are also gaining popularity. Payment apps like PayPal, Google Pay, Apple Pay, and Facebook Pay offer multi-factor authentication and facial/fingerprint recognition technology to provide added security.
Debit cards, on the other hand, are considered the riskiest form of payment since the money is tied to your bank account, and you risk losing all your funds if fraud goes unreported after 60 days. Thus, using a separate card for online payments can minimize risks.
To ensure the security of online payments, it is essential to be cautious and follow certain rules. For example, using strong and unique passwords, updating software regularly, avoiding public Wi-Fi networks, and being wary of phishing scams can help prevent fraudulent activities.