Are online payments safe?

Is PayPal safe? Is eWallet safe? What is the safest way to pay online? 

Knowing how to pay online securely can be a real challenge.

Online sales are riding a wave of growth, and discussions about the most secure payment method are now even more relevant. Regardless of what side of the transaction you’re on, either as a merchant or as a shopper, you’ve probably found yourself wondering “Are online payments safe?”

Security breaches are the top reason merchants and shoppers still debate what constitutes a secure online payment. But with news of hacked accounts, stolen identities, data breaches, and card fraud, more prevalent in today’s media landscape, merchants and payment providers have doubled up on the security of their digital environments.

Which online payments are secure?

In spite of the ever-optimizing landscape in payments, parties involved in an online transaction may still be burdened by security doubts. Let’s go over the most popular payment methods used in eCommerce today, to evaluate how they stack up in terms of security.

1. Credit cards

Cards are one the safest payment methods available online, given that their usage is regulated by payments compliance standards, such as the 3D secure flows already discussed. Credit cards, in particular, pose even smaller risks in usage for shoppers, as the money used for the purchase, which the shopper pays for later, comes from the issuing bank.

2. Debit cards

The use of debit cards for online shopping also falls under the protection of 3DS standards, which means one-time passwords sent via message or email are employed for purchase authentication. Debit cards and credit cards alike are both protected by Zero Liability Protection programs from Visa and Mastercard. These programs stipulate that card holders are not responsible for unauthorized charges, yet another factor that makes cards safe for online payments.

3. eWallets

Shoppers who don’t want to use cards online have the option to use third-party services, which act as a middleman in the transaction, such as eWallets.

Users can opt-in for stages wallets, like the popular PayPal, a category leader in sending and receiving money online since its launch, or the pass-through wallets like GooglePay or ApplePay.

These services tend to be secure by design, as they don’t share the shopper’s payment data (bank account information). This means the user doesn’t distribute their card information on the sites where they’re shopping, instead of using just the account information for the third-party service with each transaction involving the exchange of unique random codes.

Additionally, many of these services include payback or buyer protection programs, which further enhance the security of the user’s transaction and payment data.

Security of online payments may still be a concern for merchants and shoppers, but as we’ve discussed, there are a lot of mechanisms in place that has brought great developments in the field in recent years and our online platform MAKETE has a lot to offer.

Though the volume of security measures that have to be implemented may seem overwhelming, reliable partners such as banks or payment service providers can take a lot of this complexity out of the merchant’s hands.

Start by understanding what your setup is currently missing and work your way towards gradually reinforcing your online store setup.

MAKETE provides the Vendor with their own e-commerce capability and at the same time allows them to be part of a large multi-vendor marketplace. A Vendor can use the MAKETE platform as their own e-commerce capability i.e. some Vendors have their own website and can link this to MAKETE as their online store. Our online platform MAKETE offers these secure payment features. 
Contact us at [email protected] to find out more on how to get your online store on MAKETE!

About the author: Sheenal Naiker
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