4 Credit Card Alternatives for Online Shopping in 2024 – How Much Do They Stack?

Is there anything better than shopping from the comfort of your sofa? Credit cards are a good default payment method for online purchases, but there are also options that offer excellent benefits for those who prefer to shop from their phones, tablets, and computers. But what if you don’t want to rely on one of the best credit cards for online shopping? Here’s a closer look at some alternatives:

1. Debit card

Debit cards are surprisingly similar to credit cards in appearance (numbered, rectangular, and often made of plastic), but that’s where the similarities end. Unlike credit cards, debit cards are linked directly to your checking account. Any money you spend using your debit card will be deducted from your account. If your debit card is part of the Visa or Mastercard network, you can use it anywhere that type of card is accepted, including online.

security: If someone gains access to your debit card and charges you with fraud, the amount you are liable for will depend on when you report the crime. If you wait too long, you could lose all the money in your linked bank account.

Convenience: Debit cards are just as convenient as credit cards, but they only allow you to spend what’s in your bank account. Using a debit card does not mean you are borrowing money.

2. Virtual wallet

Sometimes you can even pay for online shopping orders with a virtual wallet. Options for this include Google Pay, Apple Pay, and Samsung Pay, and as you can guess, they often tie into your smartphone. These programs store your payment information (credit card, debit card, etc.) in the cloud.

security: Your smartphone contains a wealth of information about you, and with a virtual wallet, a huge amount of your financial data is also on it. To make your virtual wallet as secure as possible, focus on creating strong passwords and other ways to protect your identity and financial information.

Convenience: Virtual wallets are just another way to access traditional payment methods, but they are very convenient. If you’re shopping on your phone from the comfort of your couch and don’t want to get up and take your credit cards out of your wallet, a virtual wallet program can save you time.

3. Payment app

Payment apps are another new way to access money in your bank account or credit line linked to your credit card. You’ve probably heard of some of the big names in the industry, including PayPal, Venmo, and Zelle. This can be used to send money to other people within the network, but can also be used to pay for purchases.

security: If possible, it’s best not to store money in apps. That’s because in some cases, that money may not be insured the way it is in a bank account (thank you, FDIC!). Be careful about paying money to strangers. And as with any virtual wallet, utilize as many security features as possible (including multi-factor authentication).

Convenience: The payment app is on your phone, which is very convenient.

4. Buy now, pay later

Buy now, pay later is a type of loan offered by a third party (Affirm and Klarna are some of the larger companies) to help you pay for your purchase over time. You can pay a quarter of the purchase amount initially and make three more payments over the next six weeks (i.e. one payment every two weeks). This can be a great way to finance a purchase without interest and, in some cases, without a credit check.

security: Not all BNPL companies are the same. consumer reports We found that only a few companies (Afterpay, Klarna and PayPal) actively monitor customer accounts to protect against fraud. If you use a BNPL app, check in regularly to make sure your account is safe and you aren’t seeing any unknown charges.

Convenience: With BNPL, you have to provide additional information because you are contracting with a third party, but it is still quite convenient.

Which one should I choose?

As you just saw, you can easily make purchases over the Internet using all of these payment methods. But for my money, a credit card is still the best option. First of all, the consumer and purchase protections that credit cards offer are second to none. If there’s a problem with an item you purchased (for example, it doesn’t arrive and the seller is unable or unwilling to replace it), you can contact your credit card company. I will conduct an investigation and if the issue is not resolved and the missing item is provided, your money may be refunded to me.

Security is another area where credit cards shine. The best credit cards offer $0 liability for fraudulent charges, so if someone steals your credit card, you’re not liable for any charges they make. Many credit card companies also offer powerful mobile apps that can help you lock your card account if you’ve lost your card or suspect you’ve been the victim of fraud.

Finally, credit cards give you the opportunity to build credit by borrowing money and repaying the card issuer. Making payments on time over a long period of time shows that you are a responsible credit user, and if you are careful not to charge too much and open new cards too often, you can get a lower interest rate when borrowing to buy a home. A car or a house.

It’s okay to use one of the payment methods above when shopping online (as long as you understand how to use it). However, credit cards offer the most benefits.

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