While they are very useful, credit card companies urge consumers to be cautious while shopping online. Some companies handle the checkout process in a secure environment, but really know if your information is secure or if you are using it on a safe website.
There is a very high risk involved in online payment using personal credit cards. You risk inaccuracy, misrepresentation of prices and fraud. It is quite difficult to tell apart fraudulent stores from legitimate ones. Making online payments with your credit cards means that the online stores have your personal information. If anyone has enough of your personal information, who is to say that they will not use it for their personal transactions?
All online businesses need a secure environment to process information without putting you at risk. This is why you should consider alternative payment methods that are cheaper, convenient and most importantly more secure.
The following are great alternative ways to credit card payments online;
Prepaid Credit/debit Cards
The accessibility of pre-paid credit cards makes them much more convenient. What makes this a great alternative to personal credit cards? Prepaid credit limits access to your account by potential fraudsters. All you have to do is load it with a certain amount of money which is the limit to your expenditure. When you need to, you can just add more money. This is a great option for those who don’t like to do traditional banking but still sometimes find the need for using a credit card.
The greatest thing about this credit card alternative is that you can find plenty of Prepaid Credit Cards with Low or No Fees. This means you do not have to pay much to spend your money online. Another way to utilize this convenient payment method is to have your checking account linked with the card. It offers more flexibility and makes the process easier.
Use a debit card
The good thing is most sites that accept your personal credit cards will also accept payment with your debit cards. For many people, this is an obvious alternative for the personal credit card. Unlike the personal credit cards, you do not get the annual fee, interest rate charges and over the limit fees. A debit card is more convenient, and you do not risk getting into more debt since it is connected to the checking account. With this card, you only get to spend what you have in your account. However, you still have to be careful; there is a limited time limit for reporting fraudulent purchases. Getting your money is done within a shorter period of time.
Purchase products with a check
Some online businesses allow customers to make payments with a check. While this might be a difficult option, it is definitely better than using your personal credit card when it comes to safety. Average stores are more willing to accept this online payment option.
All you need to do is send a check to the company and wait for it to cleat the bank. Only then will the company offer you their services or ship the items you bought. While it takes time to process, it is definitely worth it.
A money order works just like the check. You send them to the business, they cash them and you wait for the goods or services. Checks and money orders can be found at your local bank.
Alternative credit
This is an innovative alternative to credit cards. It is more technologically flexible. Two famous alternative credits are pay pal credit and Cash app. They are not only secure but offer a convenient mode of payment.
Electronic wallets/electronic fund transfer
This is where all the large online businesses come in; most of them accept electronic fund transfers (ETF’S). How does it work? You transfer the money from your checking account to the stores or businesses account.
You need to add your checking account to your profile first. This will require a bank routing number, an account number, and your name and address. Some sites will ask for Your Driving license and legal state-issued ID to make the transaction more secure.
Some companies have creates an electronic wallet which is much different when compared to the personal credit card payment. The electronic wallets can be downloaded to your device and they allow you to transfer money from your debit account. To pay for a transaction, all you need to do is use the digital wallet. It is more universal than the personal credit card and you will not have to go through a hectic redeeming process.
Wire directly from your bank account
If you have money or savings in your bank account, you definitely do not need to make payments online with your personal credit card. A standard wire transfer from your bank account to the recipient is much easier and cheaper as long as you are sure of the transaction.
Final word
Using these alternatives will help you avoid major issues like fraud and damages to your credit due to debt as well as the high maintenance fees. While personal credit cards have their benefits, the disadvantages of using them to make purchases online are overwhelming.