From ordering groceries to booking travel, these days people can make quick and seamless purchases with just a few clicks. But as transactions move from physical card swipes to digital keystrokes, making secure payments is increasingly important.
In 2023, authorities received more than 14,000 reports of online shopping scams, with almost half of those reports resulting in financial losses that cost Australians almost $6 million.1 The right tools and knowledge can help people avoid this and make secure online payments.
In this article, learn about online payment security, including:
Secure online payments typically contain safeguards to help people protect personal and financial information. When shoppers enter their payment information or other sensitive personal details to buy something online, a secure checkout and online payment method can help protect this data.
Wondering how to check if a website is safe? When shopping online, consider potential signs that may indicate online transaction security, such as:
Running through the checks above can help keep payments secure. However, shoppers may need to be extra careful because scammers may be able to fake some of these aspects to lure people into entering their payment details. The Australian government may soon update payments regulation to help the Reserve Bank of Australia (RBA) counter new risks related to payments.2
Transport Layer Security (TLS) and Secure Sockets Layer (SSL) can create a secure and encrypted connection between a website and someone’s web browser.
These protocols help create a safe environment for transmitting sensitive information. The two layers work via a process called the TLS/SSL handshake, which can establish a secure connection and allow for encrypted data transmission.
Websites using these protocols can usually be identified by the “https://” in the URL. And they often display a padlock symbol in the browser’s address bar. These visual indicators can help assure users their payment information is being transmitted over a secure connection — but as mentioned earlier, some scammers may even attempt to fake these visual indicators. Be extra vigilant.
By prioritising secure online payment methods, people may be able to shop with peace of mind. Examples of safe ways to pay online include:
Whether for retail store shopping or buying goods online, debit and credit cards are generally considered a secure payment method because they usually comply with the PCI-DSS.
What might make debit and credit cards more secure than cash? Here are a few potential security benefits when shopping with a credit card:
A virtual credit card can be used as a temporary digital payment method. Typically, they contain a unique card number, expiration date, and CVV, separate from a cardholder’s physical credit card.
Because they are designed for single or limited use, people can typically generate a new card for once-off payments or transactions, which can make this option convenient for safer online shopping.
Since these card numbers are distinct from physical credit card details, they may help reduce the risk of exposing card information to potential scammers, card skimmers, hackers, or other criminals.
A digital wallet can be another secure and convenient payment method. They can store payment information, such as credit card details, bank account information, and digital currencies. Some people may use a digital wallet instead of a physical wallet or purse, allowing them to make online purchases, in-store payments, peer-to-peer (P2P) payments, and bill payments on-the-go with smart devices.
For example, with the PayPal digital wallet, people can spend, send, and manage transactions from almost anywhere. And they may gain Purchase Protection, depending on the transaction.
For security, digital wallets typically use advanced encryption and authentication techniques. Instead of sharing the actual payment details, digital wallets may use a token or a unique identifier to complete the transaction.
A prepaid card can allow people to load funds onto the card in advance. Because they’re not linked to a bank account or overdraft, the potential for financial loss may be limited to the amount of the card’s balance. By using a prepaid card for online transactions, people can keep their everyday bank account information separate from digital purchases.
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