The 7 Most Secure Payment Methods RANKED
In the modern age, it is unavoidable that you will, at some point, need to buy something online. Honestly, we expect that most individuals living on Earth currently have multiple methods of payment right in their wallet, many of which work online—but that brings up a question, what is the most secure payment method?
We know that not all websites (or stores) offer the same methods of payment, so we’ve ranked all of those payment methods available on this list in order of security—so if you can’t use one, move on and try the next.
Payment Methods in Order of Security (Most to Least)
1. Credit Card
You thought we were going to say Bitcoin, huh? But no, the safest way to pay in any situation is honestly a credit card. This is for several reasons.
The most important of which is that most credit cards have protections and rules in place that if someone steals your credit card number, you can’t be held liable for any of the charges they make. That means if you get scammed, you will get all your money back.
Of course, most credit card companies have limits, but they're usually around $10,000, which, if you’re getting scammed for that amount, we need to talk. Otherwise, no matter what happens, your payment is secure and protected. (The bank can track it, but that’s a topic of privacy, not security.)
Related: 7 Best Cryptocurrency Credit & Debit Cards
2. PayPal
The second most secure way to pay is PayPal. PayPal is a payment processor, and when you use it to pay, it keeps all your financial information out of the site, only providing what is necessary to the vendor. Plus, they have similar purchase protections to credit cards—so if you get scammed, you won’t be liable.
The other cool thing about PayPal is you can use it to pay with cryptocurrency, especially Bitcoin if you have some in your PayPal wallet. You can also store money in multiple currencies and pay with them later. Sadly, the conversion rate is a bit steep for non-local currencies, but hey, it’s secure, and that’s all that matters.
Additionally, it’s worth mentioning that PayPal is slightly more private than a credit card. Yes, they will still report your financial information to the government if requested, but you won’t have to worry about the government peeking into your information regularly as you would have to worry about at some bank branches.
Related: Buying Bitcoin on PayPal
3. Apple Pay/Google Pay
Actually, our number three is technically a tie with number 2. Using your Apple Pay or Google Pay for touchless payments in a store is incredibly secure, as the merchant never receives your card number. Rather, they receive something akin to a one-time use code, which is deleted after your bank sends your money.
While you don’t quite have the same purchase protections as a credit card if you use your credit card on your Apply Pay/Google Pay, this is easily one of the most secure ways to pay, and we highly recommend using it if you are able to do so. It’s one of the most private ways to pay we’ve mentioned so far, though your bank can still report your spending to the government.
4. Debit Cards
While it is definitely safer for your financial situation to use a debit card instead of a credit card, it is noticeably less secure if the numbers or card get stolen. Of course, most debit card companies will return funds up to the same amount as a credit card company if stolen ($10,000). Know that it can take a while for this to process, leaving you without any cash in the meantime.
Not only that, but many people connect their debit card to both a savings and checking account, meaning if the card is stolen, you are much more likely to lose over $10,000, which is why it is better to use a credit card.
If you do absolutely want to use a debit card, consider loading it into your Apple or Google wallet and destroying the card itself. This way it cannot be stolen and you’ll have an extra layer of protection when using it to pay at various merchants.
5. Pre-Paid Card
Pre-Paid cards are safe in the aspect that no one can track your spending. That being said, if you lose it or lost the numbers, you have no protection against fraud. Additionally, if you are scammed and you pay with a pre-paid card, you will never be able to get your money back.
That being said, pre-paid cards are private if that’s what you’re going for, but if a company asks you to pay in pre-paid cards—run.
6. Bank Transfer/Bitcoin Transfer
Never, ever, ever send someone you don’t know a bank transfer or Bitcoin transfer. Bank transfers and Bitcoin transfers are hard to reverse and often don’t have the same protections provided as paying with a debit or credit card. Except for in rare situations (such as when renting a new apartment and you need to pay a deposit), a vendor asking you for a bank transfer or Bitcoin transfer is likely trying to scam you. Don’t send it and report the vendor immediately.
7. Venmo/CashApp
You thought this would be higher up huh? But no, Venmo and CashApp are actually very dangerous ways to pay—and this is for several reasons.
One, the protections offered when using an app like PayPal simply aren’t offered with Venmo, although this might change as Venmo rises to become more like a traditional bank. Either way, once you spend money, it would be extremely hard to get it back. Two, although you don’t get the protections of a Credit Card, you are still subject to the same submissions to the US government—meaning you could end up paying taxes on amounts sent to you through Venmo come tax season.
If that weren’t enough, although Venmo doesn’t share your card number with vendors, it does share your image, name, and transactions with all who follow you on the app.
That being said, Venmo is a great invention for splitting bills with friends—just don’t use it to pay strangers and never pay back “accidental” Venmo payments—as these are almost always scams.
Overall, the payment method you choose to use is ultimately up to you; we just wanted to make you aware of the dangers of certain payment methods so you can make an informed decision next time you shop.
