5 Safest Ways to Pay Online & Security Tips 2025 

In the third quarter of 2024 alone, over 422 million records were compromised globally due to data breaches. 

While electronic payment methods have made global ecommerce more convenient, they also increase the vulnerability of both businesses and customers to cybercrime.

If online payment systems are not properly secured or effectively managed, they become susceptible to a wide range of cyber threats. These include payment fraud, malware attacks, and unauthorised access to sensitive information such as credit card details, account credentials, and personal data. Such exposure can lead to financial fraud, first-party fraud, unauthorised transactions, and even identity theft.

This makes data security one of the biggest concerns for consumers when choosing an online payment method. 

In this article, we’ll explore the top 5 most secure payment methods and why they are a good option to help you safeguard your online transactions. Whether you're an online shopper seeking safer ways to pay or a business looking to offer secure payment methods to your customers, this guide has you covered.

Although there is no single safest way to pay online, credit cards, debit cards, single-use virtual cards, digital wallets, and traditional bank transfers are the best 4 safest ways to pay when shopping online.

Let’s look at how each of them works.

A credit card is a type of payment card issued by banks or financial institutions to individuals or businesses, allowing them to make purchases or cash advances on credit. This means funds are borrowed to spend up to a predetermined limit, which must be repaid later, along with any accrued interest charges. 

Why Credit Cards Are Likely Safe

Since credit cards don't directly debit your bank account at purchase, you will typically have more time to flag any suspicious card spending before your credit card bill is due, potentially avoiding financial losses. 

Additionally, credit card transactions involve borrowing money from the bank, so it’s often easier to stop payments and reverse unauthorised charges. If you notice fraudulent activity, you can contact your card issuer to freeze the account and reverse payments. Credit card companies often have 24/7 customer service for emergencies. 

Most credit card companies also have zero-liability policies, meaning they won’t hold you responsible for unauthorised charges provided that you report the issue promptly.

Another thing that safeguards credit card transactions is the Payment Card Industry Data Security Standard (PCI DSS), which sets strict security requirements for handling cardholder data. Most major credit card issuers, such as Visa, Mastercard®, and American Express, are members of the PCI Security Standards Council.

Credit card providers like Visa and Mastercard® typically have fraud detection systems that help identify and prevent unauthorised charges, such as the following:

• Purchase Verification: You are typically required to verify high-value purchases through additional steps, such as receiving a one-time password (OTP) on your mobile device. 
• Address Verification Service (AVS): This is what allows the merchant to verify the billing address against the one on file with your issuer, reducing the risk of unauthorised purchases.
• CVV Security: Online purchases usually require a CVV code, which is a 3-digit code printed on the physical card, ensuring the card is in your possession.
• Fraud Monitoring: The bank or card issuer usually monitors and blocks suspicious transactions with unusual patterns.
• Data Encryption: Sensitive data like your credit card number is encrypted during online payment processing, offering security to your information. 
• Chargeback Process: If you're charged fraudulently, you can dispute the charge and potentially recover your money through the chargeback process.

• Limited Acceptance: Some merchants do not accept credit cards for online purchases, often due to high processing fees.
• Interest Charges: If the credit card bill is not paid on time, interest will be charged on the outstanding balance, and debt can quickly spiral out of control. Credit card debt is a growing issue for consumers worldwide.
• Additional Fees: Certain credit cards may impose extra fees for specific transactions, such as cross-border transfers. 

Although debit and credit cards are processed in the same way, they differ in how the account is funded. A debit card is a type of payment card linked directly to your checking account, allowing you to make purchases or withdraw cash using the funds available in your account. 

Why Debit Cards Are Likely Safe

Debit cards have several protective mechanisms built into the system by both the bank and the payment network (like Visa, Mastercard®, etc.). When making an online transaction with your debit card, the payment processor, card provider, and issuing bank work together to verify your identity and transaction details.

Moreover, if suspicious activity is detected, the card is automatically blocked or frozen until the cardholder reactivates it. 

Most debit cards also comply with the Payment Card Industry Data Security Standard (PCI DSS), which enforces strict security protocols for handling cardholder data.

The following features further enhance the security of debit transactions:

• Secure Networks: Online debit card transactions are usually processed through encrypted networks. 
• Transaction Alerts: Banks typically send real-time alerts via text or email to notify you of any activity on your card. 
• Biometric Authentication: Some banks and card providers require fingerprint or facial recognition to authorise transactions via mobile phones, especially for larger amounts.
• 2-Factor Authentication: You typically need a PIN to verify a transaction. In addition to your PIN, you may be required to provide a second form of verification, such as a code sent as an SMS for added protection
• Verified by Visa/Mastercard® SecureCode: These card issuers usually request additional authentication, such as a password or code, to verify your identity during high-value online purchases.

Fraud Monitoring: Banks usually detect unusual card activities, such as larger-than-usual purchases or transactions made in unusual locations.

• Chargeback Limitations: Recovering funds from fraudulent debit card transactions can be more complex than credit cards.
• Direct Account Access: Debit cards are linked directly to your checking account, meaning that if someone gains access to your card information, they could drain the funds from your account and potentially lead to overdraft fees.
• Overdraft Risk: Debit card transactions can result in overdrafts if your account doesn’t have sufficient funds.
• No Credit Building: Unlike credit cards, using a debit card does not help build credit history as it does not involve borrowing money.
• Less Rewards and Benefits: Debit cards usually don’t offer rewards programs like cashback or travel points.

A Single-Use Virtual Card (SUVC) is a digital, temporary payment card designed for a single transaction. Each time an SUVC is generated, it comes with unique details, such as a one-time card number, expiration date, and CVV. 

These details are typically valid for a limited amount and only for a short period. Once used or after the timeframe expires, the card details become invalid.

Why Single-Use Virtual Cards Are Likely Safe

Since the card details are only valid for one purchase, even if they are compromised, they cannot be reused for future purchases. This significantly reduces the risk of fraud and identity theft.

These cards are especially useful for people who want to avoid using their main credit or debit cards.

• One-Time Use: Card details are valid for a single transaction, increasing privacy and reducing the risk of fraud.
• Card Network Security: Issuing financial institutions typically use encryption to secure transactions.

• Limited Acceptance: Single-use virtual cards may not be accepted by all merchants.
• Issuer Requirement: You must have a bank or service provider that offers virtual card services.
• Fees: Some providers charge fees each time a virtual card is generated.

Digital wallets are a type of payment app that stores payment information, such as credit and debit cards and bank details, in one portal, so you can make purchases conveniently without a physical card. 

Some popular digital wallets include PayPal, Apple Pay, Samsung Pay, Google Wallet, Alipay, and Venmo. 

Why Digital Wallets Are Likely Safe

Once your cards are uploaded to a digital wallet, you can make payments without entering card details for every transaction, reducing the need to reveal personal information to third parties.

A key security feature of digital wallet transactions is tokenisation. During transactions, digital wallets replace your card details with a unique, one-time payment code, ensuring your personal information remains secure from unauthorised access.

This security method encrypts the account holder's data to such an extent that even if the retailer's system is breached, card numbers would remain protected.

• Tokenisation: Digital wallets replace your actual credit or debit card numbers with single-used digital tokens, reducing the risk of information exposure.  
• Device-Specific Security: Each digital wallet leverages the security features of your mobile device or mobile payment apps. 
• Secure Element (SE): Most mobile devices have a dedicated chip to store sensitive data, including payment information, separately from other data. This chip is called a secure element. 
• Fraud Protection: Digital wallet providers typically have fraud protection policies that cover fraudulent transactions, such as account lock and geolocation restrictions. 

• Internet Reliance: You will need a stable internet connection to use digital wallets for online payments. Digital wallets and payment apps are also subject to occasional technical glitches or errors.
• Potential Fees: Some digital wallet providers may charge payment processing fees for some types of transactions, particularly international transfers. 
• Privacy Concerns: Digital wallets may not be preferable if you want to keep your data offline.

Bank transfer between two bank accounts is another secure payment method. It’s particularly ideal for large transactions, business transactions and international payments, as it has strong end-to-end encryption and authentication features. 

Common bank transfer methods include:

• Wire transfers - A type of electronic funds transfer that moves money between bank accounts using networks like SWIFT. 
• CHAPS and BACS - UK systems for same-day (CHAPS) or slower (BACS) electronic payments between bank accounts.
• ACH transfers - An electronic transfer primarily used between US local bank accounts. 
• Mobile Payments: Most banks now offer mobile banking services that allow you to send money to the recipient instantly.

To initiate a transfer, you will need to provide your details, the recipient's information, and a unique code, such as a routing number or sort code for domestic transfers and a SWIFT code for international transactions. The banks will then securely exchange transaction details, and the recipient's bank will deposit the funds into their account. 

Why Bank Transfers Are Likely Safe

These instructions are relayed securely via an encrypted network of trusted financial institutions. They do not involve third parties, which reduces the risk of exposing sensitive payment details. Once a transfer is made, it is recorded by the bank, providing a clear audit trail for both parties.

• Regulatory Compliance: Banks are subject to strict supervision by financial authorities, which ensures that customers' data and funds are protected.
• Authentication Protocols: Banks typically implement authentication measures to ensure secure online payments, such as 2-factor authentication (2FA) and one-time passwords (OTPs). 
• Payment Reversals: While payment reversals are typically not simple, certain types of transfers, such as SWIFT and ACH, can be reversed under specific circumstances, such as fraudulent transactions.

• Processing Time: Transfers between banks, especially internationally, can take several business days to process. 
• Fees: Bank transfers can incur fees when using specific services like SWIFT transfers, which can vary depending on the bank and the amount transferred. 
• Limited Convenience: You may be required to visit a bank branch to make high-volume transfers, which might not be as convenient as other online payment methods.

Even when you choose the safest online payment option, it’s essential to remain vigilant against potential threats like scammers and hackers. 

Here are what we recommend you to do to protect your financial information and ensure payment security. 

Before entering your payment information, ensure the online store is reputable, especially if it’s one you haven’t used before. A quick way to verify is by checking feedback from other customers on review platforms like Trustpilot or Google Reviews. 

These days, it’s easy for scammers to create fake websites that closely resemble legitimate ones. To avoid falling for these traps, double-check the website’s URL for any misspellings or suspicious characters. Pay attention to the quality of the images on the site — low-quality visuals can be a sign of a scam.

Legitimate businesses usually don’t request sensitive details like passwords and payment information through emails, links, or forms. 

If you receive an unsolicited email or message on social media requesting personal or payment information, it is likely a phishing attempt. Additionally, never click on any suspicious link within the email or on any of your social media. 

Only fill in the mandatory details during checkout. Avoid creating an account with the store unless absolutely necessary. The less personal information you leave with a third-party website, the better.

Additionally,  if you are asked whether you want the website or browser to save your payment details, you should decline to prevent information from being stored. This reduces the risk of your sensitive data being accessed in case the seller’s website or your device is compromised.

To protect your financial information, always use a strong password for any account that stores sensitive data, including online shopping accounts and financial apps. A strong password typically includes a mix of uppercase and lowercase letters, numbers, and special characters.

Avoid using your name, birthday, or common phrases. Instead, choose something unique and complex.

For additional security, consider using a separate debit or credit card for online shopping. Opt for a card that is not linked to the account where you store a large sum of money. This limits the potential damage if your card information is compromised.

Regularly updating the software on your devices—whether it’s apps, your PC, or mobile—is crucial for staying protected against online threats. Software updates often include security patches that fix vulnerabilities identified by developers. These patches are designed to address new risks and reduce the chances of your system being hacked.

Free public Wi-Fi networks, such as those found in cafes, airports, and hotels, may not be secure. Avoid accessing sensitive accounts or making online payments when connected to these networks. If you must use public Wi-Fi, consider using a Virtual Private Network (VPN) to encrypt your connection and protect your information from being intercepted.

If you are an ecommerce business owner, ensuring the security of your online payment systems is essential to protect sensitive customer information and prevent fraud. 

A secure payment system also helps build brand credibility, foster customer loyalty, speed up the conversion process, prevent financial losses, and ensure compliance with industry regulations—all of which are crucial for long-term business success.

As an ecommerce business owner, you can ensure the safety of your online payment systems by using the following:

Your online store’s payment service provider and payment gateway should be reliable in not only processing transactions but also protecting your customers' sensitive information. 

You can start by reviewing each solution’s compliance status with the Payment Card Industry Data Security Standards (PCI DSS). This is a set of rules that guarantees the safe handling of credit card data. What’s more, you should check to ensure that the data transmissions are duly encrypted with SSL or TLS.  

Two-factor authentication adds a layer of login security, mandating users to provide two distinct forms of identification. You could, for instance, require each customer to enter their account password along with an SMS OTP. This will minimise the likelihood of unauthorised account access. 

One way to prevent payment fraud is to integrate fraud detection systems, which utilise specialised tools designed to flag and block suspicious activities. A fraudster may, for example, set off alarm bells by repeatedly trying to purchase with different credit cards or from varying IP addresses.

By diligently monitoring your online payment systems, you’ll be able to detect any suspicious activity that could jeopardise your customers' financial information. Then, to safeguard the business from any potential vulnerabilities that may arise due to outdated payment systems, you might want to stay up-to-date with the latest security patches.

Keep informing your customers about the importance of safe online payment practices. For instance, you could caution them against sharing card information, even with friends and family members. 

While secure payment methods like credit and debit cards, digital wallets, and bank transfers utilise advanced technology to protect your privacy when making online transactions, it’s always better to be safe than sorry in this digital age.

If you’re paying online, prioritise secure payment options to protect your financial information and always be alert for scams. If you’re a business owner, invest in payment solutions to prevent fraud and data breaches. 

After all, the only thing better than making money is keeping it safe and sound.

If you own a business and are seeking a secure way to pay and receive payments online across borders, consider Statrys.

Statrys is a payment service provider that offers a multicurrency business account in 11 major currencies. It is designed for companies registered in Hong Kong, Singapore, and the BVI, allowing them to securely pay and receive payments from international suppliers, business partners, and customers. Additionally, the account includes a prepaid card (subject to approval), which is designed for employee spending and comes with tracking and reporting features.

Explore the features of Statrys’ multicurrency account below.