Secure Online Payments

The Internet era has given a boost to online shopping and banking which has ultimately
led to online fraud and identity theft. Online transactions always carry some risk, but
consumers can incorporate many things to increase their security on the web. If you
take just the right precautions, you can avoid these threats easily.
There are three main ways to make a payment online:
 Using a credit card;
 Using a debit card; or
 Using an online payment service provider such as PayPal.
These options all have advantages and disadvantages.
Using a credit card is good because your liability is limited if your card details are
stolen. The precise details of the limitation vary by country or region, because they are
set out in regulations—but you can be reasonably confident that you are protected
against theft and fraud of your card details.
However, there is still a risk of theft, so you may want to consider keeping one credit
card that you only use online. This will mean that if you need to cancel it, you will still
have other payment options until a replacement can be sorted.
Debit cards are convenient because you are not left with a potential bill at the end of
the month. Many banks offer similar protection to credit cards. However, if your card
details are stolen, any fraudulent payments will be taken direct from your bank account,
which may cause problems such as overdraft fees or inability to make other payments.
If possible, therefore, use a credit card if you want to use a card to pay online.
The third option is third-party payment services such as PayPal. These allow you
to provide a credit or debit card number to the payment service provider, and NOT the
merchant. Your card details are therefore only held in one place, rather than
(potentially) hundreds. This limits the potential for your card details to be stolen.
You can increase the protection available by using a credit card via your payment
service provider. This means that your liability is limited AND your card details are held
in fewer places. It also means that if you have a dispute, you have options to go to both
the payment provider and your credit card company.
Trusted digital payment services:
There are several trusted digital payment services for online payments. Here are some
well-known options:
Stripe: Stripe is a popular payment platform that enables businesses to accept online
payments. It provides robust security measures, seamless integration options, and
supports various payment methods, including credit cards, digital wallets, and localized
payment methods.
Square: Square offers a range of payment solutions for businesses, including online
payments. It provides secure payment processing, customizable checkout options, and
supports various payment methods. Square is particularly well-suited for small and
medium-sized businesses.
Google Pay: Google Pay allows users to make online payments, in-app purchases, and
peer-to-peer transfers. It is available on both Android and iOS devices and offers a
convenient and secure payment experience.
Apple Pay: Apple Pay is a digital wallet service provided by Apple for users of its
devices. It enables users to make secure online payments, in-app purchases, and
contactless payments in physical stores using their Apple devices.
Amazon Pay: Amazon Pay allows users to make online payments on various websites
using their Amazon account credentials. It offers a familiar and secure payment
experience for customers who already have an Amazon account.
Venmo: Venmo is a popular peer-to-peer payment service, particularly in the United
States. It allows users to send and receive money from friends and family and supports
social interactions and payment splitting.

Preventing Problems When Shopping Online

Check the website address

If it is a ‘bricks and mortar’ retailer that you already know about, check that the website
address is consistent with what you would expect. Most big retailers have fairly simple
domain names: johnlewis.com, for example, or diy.com. If you see numbers or
additional words that you wouldn’t expect, be wary, because it may be a ‘pharming’ site
(fake site set up to look like a genuine one).
The best way to manage this is to use a search engine to find your chosen retailer:
fraudulent sites are very unlikely to be high up in the results (unless they have paid for
an advertisement). The first of the organic search results will most likely be your retailer
if you search by name.
Check review sites
For online-only retailers in particular, check review sites, and look at what people are
saying. You can also search for ‘Complaints about [retailer name]’ and see what comes
up. If there is any doubt about the quality of the service, don’t buy.
Check the company’s returns policy
Many companies ask you to pay postage on returns, especially if they offer free postage
on initial purchases. Particularly on marketplaces such as eBay, it is also worth
checking where the goods are coming from. If they are coming from China, with free
postage, you are NOT going to want to pay to return them. Indeed, it could cost more to
return them than the goods are worth.
Be aware of your consumer rights—and make decisions accordingly
For example, when you buy in a store in the UK, retailers don't have to give you a
refund (just a credit note) if you simply decide you don't want the goods.
When you buy online, it's slightly different, and they must give you a refund for
unwanted goods provided they are returned within 14 days. It is therefore important that
you return unwanted goods immediately if you want a refund. Any longer and you might
be stuck with a credit note.
Consider using online marketplaces rather than individual seller sites
Many smaller retailers now choose to sell via an online marketplace, rather than have
their own e-commerce site. This can reduce their costs—but it also helps you as the
customer.
By using these marketplaces, you have a relationship with the seller themselves—but
you also have a relationship with the marketplace. If you have a dispute with the seller,
for example, if the goods don’t arrive and the seller doesn’t respond to your messages,
you can take this up with the marketplace. It may be able to provide a refund directly.
This gives an additional area of protection.
Check where the goods are coming from—and your tax liability as a result
The internet is global. It allows you to contact people—including retailers—from around
the world. Sometimes this is a great thing. At other times, it may catch you out.
There is a growing trend for goods to be sent direct from where they are manufactured,
especially when you buy via marketplaces. Many of the retailers on Amazon and eBay,
for example, are dispatching goods from China. This is good in many ways, because it
keeps the costs low.
However, you may be liable for import tax on some goods from some places. It is worth
checking your liability before you buy, to avoid your cheap goods turning out to be much
more expensive than you were expecting.
Your consumer rights may also be different if you buy from a company abroad.

Protecting Your Personal Information

Do NOT use public Wi-Fi for any payment transactions unless it is unavoidable.
Your own data connection at home is more secure. It is also worth avoiding mobile
payment apps that connect through public Wi-Fi hotspots. If you are in public, make
sure that nobody else can see your screen.
Always check the security of the website
This is especially important if you are using public Wi-Fi, but it applies to any
transaction. Make sure that the website is encrypted. Secure sites will have a url that
starts ‘https’ not ‘http’ (the s is for secure). You should also see a little padlock symbol
next to the address bar.
You can also look at the website’s security certificate. If you click on the padlock symbol
to the left of the address bar, you will see information about who has registered the site.
If you see a warning about the site certification, it is best to avoid that site.
Keep your anti-virus and anti-malware protection up-to-date, and scan regularly
This is important for anything that you do online, but even more so when money is
involved. There is more about this in our page on Protecting Yourself in the Digital
World.
Use strong passwords for any account associated with money
We all understand that it is difficult to have unique passwords for everything. However, it
is worth making the effort for any site where you plan to provide payment details and
other personal information.
Act quickly if you think that your card has been used by someone else
Contact your card provider or bank in the first instance. Some also have options to stop
or freeze cards via a mobile app, which may be useful outside normal business hours.

Reference :

1. https://www.skillsyouneed.com/general/online-shopping.html
2. https://www.nttdatapay.com/blog/7-tips-to-do-online-transactions-safely/