There has been a huge shift to online shopping and it also means that more people are now using online payment methods than ever before. From credit cards to peer-to-peer transactions, businesses have been offering a diverse range of payment methods to cater to a growing interest in online shopping.

But with that influx also comes the increased risk for cybercrime. So, how secure are these online payment methods?

Comparing Security of Different Payment Methods

• Credit cards.

The most vulnerable among the bunch, cases of fraud and identity theft are nothing new for businesses and consumers. But they could also affect both sides of the spectrum, which is why a lot of businesses need high-risk merchant account processors that help protect them from these incidents.

According to the Truth in Lending Act, the liability for unauthorized credit card transactions is limited to just $50, and no liability may be imposed by the party if the physical card wasn’t involved.

• Debit cards.

Debit cards are governed by the Electronic Fund Transfer Act which aims to protect consumers against any unauthorized or incorrect electronic fund transfers, bookkeeping errors, and incorrect receipts.

The liability for lost or stolen debit cards is limited to $50 if reported within 2 days and $500 if reported within 60 days. An investigation may also be conducted regarding the issue and it can last between 10 and 45 days.

• Mobile wallets.

Google Pay and Apple Pay are considered very secure since they usually have two-factor authentication, one-time PINS, and encryptions. The mobile wallet user also needs to authorize the use of their debit or credit card on their smartphone when shopping online.

As long as the user’s mobile phone is secured with biometric authentication or fingerprint locks, this payment method is considered one of the most secure out there.

One of the most popular types of peer-to-peer (P2P) payment systems, PayPal offers a secure way to make payments with its two-step authentication and a different PIN each time you log in.

Confirmation emails are also sent for every transaction that’s made through an account to make sure that no suspicious transactions go unnoticed. Transactions made through PayPal are also end-to-end encrypted.

This means that the seller wouldn’t be able to see the buyer’s financial information. PayPal also doesn’t hold its users liable for unauthorized transactions that are reported within 60 days.

How BNPL Measures Up

Finally, there’s one of the most popular online payment methods today: buy now, pay later options such as those offered by Affirm and AfterPay.

Although this payment method is so convenient for consumers who can’t afford one-time payments on items they’d like to purchase, BNPL is not governed by any consumer protection or federal regulation.

So, if a customer purchases an item using BNPL or they didn’t authorize a purchase, the customer needs to get in touch with the retailer and not the lender; otherwise, they will continuously be charged for the installment fees until the transaction has been refunded or voided.