Credit Cards and Alternative Payment Methods
Using credit cards when shopping online and swiping cards at retail offers more consumer protection than debit cards. As a rule, using a credit card to purchase online is safe when following the rules of online safety we just discussed. (Remember to set up 2-factor or multi-factor authentication for your credit account!) Credit cards limit your liability (federal law), and credit card issuers often offer zero liability for online purchases. The Fair Credit Billing Act states that if your credit card number is stolen (the number only, you still have your card), you are not responsible for any fraudulent charges.
Debit cards do not have the same protections under federal law as do credit cards. Recouping your money may be more difficult and you will not have access to your stolen funds until the matter is resolved.
Alternatives to credit cards
You may be protected but still want an extra layer of protection. You may be able to use a virtual wallet like Apple Pay or Google Pay. A virtual wallet means the store or vendor never gets your credit card information. A virtual wallet transaction uses a one-time token that isolates your account from the store—using your smartphone wallet to pay for items when shopping in person is a safe and fast way to shop!
PayPal etc.
Many sites allow 3rd party payment services like PayPal. You can use PayPal on Etsy, American Airlines, or Foot Locker, for instance, and never share your credit card information.
Gift cards
Another alternative is to use store gift cards. You can purchase a gift card and add money to it as necessary. A gift card can only be used to purchase items within the monetary limit of the gift card. If you use a gift card as the payment method for a shopping account, you cannot lose more than the card’s current balance.
Sending money to family and friends
You can use services like Venmo, PayPal, and even Facebook to send money to family and friends. These services are safe and convenient. But, if you send money to someone by accident there may be no recourse. Once the money is sent, it is gone unless the recipient is kind enough to return it.