How to make secure online payments: Top 10 payment methods reviewed

Online shopping, paying bills, or sending money all come with risks. Cybercriminals are constantly looking for new ways to steal financial information, whether through data breaches, phishing scams, or fraud. Without the right precautions, your payment details could end up in the wrong hands.

The good news is secure online payments are possible—but with so many ways to pay, it’s not always clear which is the safest. Choosing the right method is about convenience just as much as it is about keeping your money and personal information away from cybercriminals. Below, we’ll break down the most secure payment options so you can make the safest choice for your transactions.

Why payment security matters

Cybercriminals always try to exploit even the most secure online payments, making fraud and identity theft a real threat. A single weak spot, whether it’s an unsecured connection, a phishing scam, or a compromised payment platform, can expose your financial details. Knowing the risks and how to protect yourself is key to keeping your transactions safe.

Common online payment risks

When you shop online or transfer money, you could be exposed to threats like:

• Phishing: Fake emails, messages, or websites trick you into entering payment details on fraudulent platforms.
• Data breaches: Hackers target businesses and payment processors to steal financial data that can be sold or misused.
• Credential stuffing: Attackers use already leaked passwords to break into as many of your accounts as possible.
• Man-in-the-middle (MITM) attacks: Cybercriminals intercept and steal payment details on unsecured networks, such as public Wi-Fi.
• Fake online stores: Scammers create convincing but fraudulent sites to collect payment data without delivering products.
• Chargeback fraud: Fraudsters exploit payment systems by making purchases and then falsely disputing them for a refund.

How cybercriminals target online transactions

Hackers get in the way of secure online payments using various tactics, including:

• Malware and keyloggers: Malicious software that records everything you type, including credit card numbers and passwords.
• Public Wi-Fi attacks: Hackers intercept financial data on unsecured networks if payments aren’t encrypted.
• Fake payment gateways: Fraudulent checkout pages mimic real ones to steal your billing details.
• Social engineering scams: Cybercriminals impersonate banks, businesses, or customer support to trick you into sharing your financial information.
• Card skimming: Hackers inject malicious code into legitimate online stores, stealing payment details in real time.

The importance of encryption and fraud prevention

Encryption and fraud prevention are the backbone of safe transactions. Without them, cybercriminals can intercept transactions, steal payment details, and commit fraud. 

How encryption protects your payments

Encryption scrambles your payment data, making it unreadable to hackers. Strong encryption ensures that even if data is intercepted, it can’t be used.

Key security technologies include:

• SSL/TLS encryption ensures websites with HTTPS protect payment data from being tampered with.
• Tokenization replaces card details with unique tokens, so your actual information stays hidden.
• End-to-end encryption ensures only the recipient can read payment details.

Fraud prevention measures that keep your payments safe

• Multi-factor authentication adds a second verification step, like a one-time code, to prevent unauthorized access.
• Real-time fraud detection is used by banks and payment providers to monitor transactions for suspicious activity and block potential fraud.
• Chargeback protection is offered by credit cards and some digital wallets. It lets you dispute fraudulent charges and get refunds.

Top 10 most secure online payment methods

Online payments should be safe, private, and convenient—but not all payment methods offer the same level of security. Some prioritize fraud protection, while others focus on privacy and anonymity. Choosing the right option can make all the difference in making secure online payments.

1. Credit & debit cards—Strong fraud protection

Credit and debit cards are among the most common online payment methods, offering convenience and built-in fraud protection. But while both can be used for secure online payments, they come with different risks and levels of security.

Credit cards are generally safer because they offer stronger fraud protection and don’t pull money directly from your bank account. If someone gets hold of your credit card details and makes an unauthorized purchase, you can dispute the charge and usually won’t be held responsible. Debit cards withdraw funds instantly from your account, making fraudulent transactions harder to recover.

Security benefits:

• Fraud monitoring: Banks keep an eye out for unusual activity and may block suspicious transactions.
• Chargeback protection: If something goes wrong, like a fraudulent charge or a scam purchase, you may be able to dispute the charge and get your money back.
• Encryption and authentication: Many transactions are encrypted, and some require extra verification through 3D Secure protocols.
• Limited liability (for credit cards): Most credit card companies won’t hold you responsible for unauthorized transactions if you report them quickly.

Security risks:

• Data breaches: If a company you’ve shopped with gets hacked, your card details could be stolen.
• Weaker fraud protection for debit cards: If fraud happens, the money is taken straight from your bank account, and getting it back can be more difficult.
• Not anonymous: Since they’re issued by banks, credit and debit cards are linked to your identity.
• Potential fees: Credit cards may charge interest, annual fees, or foreign transaction fees, while some debit cards have overdraft fees if you go over your balance.

2. Digital wallets (PayPal, Apple Pay, Google Pay)—Extra security layers

Digital wallets allow for secure online payments as well as in-app and in-person transactions. Your information is stored on your device, and payments are made simply by authenticating your identity using a fingerprint, face scan, or passcode. Instead of sharing your actual card number with merchants, digital wallets generate a unique transaction ID, keeping your financial details private.

One of the biggest advantages of digital wallets is convenience. Many cities now support contactless payments for public transportation, letting you ride buses and subways with just a tap on your phone. Plus, digital wallets reduce the need to handle physical cards or cash—making them a fast, easy, and more hygienic way to pay.

Security benefits:

• Hides your real card details: Merchants only receive a unique transaction ID, reducing the risk of fraud and data breaches.
•  End-to-end encryption: Payment details are encrypted, making it difficult for hackers to intercept transactions.
• Biometric authentication: Many wallets require a fingerprint, face scan, or PIN, making unauthorized payments harder.
• Tokenization technology: Digital wallets replace card numbers with randomized tokens, so even if payment data is intercepted, it’s useless to hackers.
•  Buyer protection (PayPal): If you don’t receive what you paid for or suspect fraud, you may be eligible for a refund or dispute resolution.

Security risks:

• Vulnerable to phishing attacks: Scammers may trick you into sending payments through fake emails or fraudulent payment requests.
• Account takeover risks: If your digital wallet account is breached, attackers could make purchases using stored payment details.
• Device security: If someone gains access to your unlocked phone, they may be able to bypass wallet protections and make transactions.
• Data breaches at wallet providers: While digital wallets add security, companies like PayPal, Apple, or Google could still suffer a data breach, potentially exposing your information.
• Limited fraud protection: Some digital wallets offer less protection for peer-to-peer (P2P) transactions, making it harder to recover money sent to scammers.

3. Cryptocurrencies—Private but volatile

Cryptocurrencies are decentralized digital currencies that rely on blockchain technology to process transactions. Crypto is considered one of the easiestways to conduct secure online payments as transactions happen peer-to-peer without the need for banks or financial institutions. 

Many online services and marketplaces now accept cryptocurrency payments, including ExpressVPN. 

Security benefits:

• Peer-to-peer transactions: No banks or third parties involved, reducing the risk of payment fraud.
• Blockchain technology: Transactions are recorded on a public ledger, making them tamper-resistant and highly secure.
• Privacy and anonymity: No need to share banking details or personal information when making payments.
• Decentralized system: Funds are not controlled by a single entity, reducing the risk of account freezes or government restrictions.

Security risks:

• Price volatility: The value of cryptocurrencies fluctuates significantly, affecting their reliability as a payment method.
• Irreversible transactions: Once a payment is sent, it cannot be undone, making errors or fraudulent transfers hard to recover.
• Loss of private keys: If you lose access to your crypto wallet’s private key, you lose access to your funds permanently.
• Crypto scams & hacking risks: Phishing attacks, fake investment schemes, and wallet breaches can result in stolen funds.

4. Bank transfers—Direct and regulated

Bank transfers are one of the most regulated online payment methods. They allow you to send money directly from one bank account to another, often without needing a third-party payment processor. This makes them a reliable option for large transactions, bill payments, and international money transfers.

Security benefits:

• Strict regulations and oversight: Banks must follow high-security standards to protect against fraud and unauthorized transactions.
• Multi-factor authentication: Most transfers require additional verification (such as SMS codes or app-based authentication) before processing.
• Direct account-to-account payments: Since there’s no third-party processor, sensitive card details aren’t stored, reducing exposure to breaches.
• Encryption & fraud detection: Transfers are encrypted, and banks monitor transactions for suspicious activity.

Security risks: 

• Difficult to reverse: Unlike credit card chargebacks, fraudulent or mistaken transfers are often non-refundable.
• Phishing and impersonation scams: Attackers may trick users into sending money to fake bank accounts, which can be hard to recover.
• Bank account exposure: If your banking details are compromised, attackers may gain access to your entire account, not just a single transaction.
• Potential for insider fraud: Since bank transfers involve financial institutions, a compromised or dishonest bank employee could abuse access to sensitive data.

5. Virtual payment cards—One-time-use security

Virtual payment cards provide an extra layer of security for online transactions by generating a temporary, disposable card number linked to your actual credit card or bank account. Instead of entering your real card details at checkout, you use the virtual number, which becomes useless once it expires.

These cards are ideal for secure online payments, especially on websites you don’t fully trust. Even if hackers steal the virtual card details in a data breach, they become useless after expiration. Some providers also allow you to set spending limits, ensuring that even if someone gains access to the card, they can’t exceed a fixed amount.

Security benefits:

• Protects your real card details: Merchants only see the virtual card number, keeping your actual payment information safe.
• One-time-use numbers reduce fraud: Even if a hacker steals the details, they’re worthless after the card expires.
• Reduces exposure to data breaches: Your real bank account or credit card details remain hidden from retailers.
• Custom spending limits: Some providers allow users to set a maximum transaction amount, capping any potential fraudulent purchases.

Security risks:

• Limited fraud protection for recurring payments: Virtual cards often don’t work for subscriptions, forcing users to expose their real card details.
• Vulnerable to account takeovers: If your bank or virtual card provider is hacked, attackers can create new virtual cards for malicious purposes.
• Phishing attacks and social engineering risks: Cybercriminals may trick you into providing access to a virtual card provider account.
• Still tied to your real account: While virtual cards protect card numbers, they can’t prevent fraud if your bank account is compromised.

6. Mobile payment apps (Venmo, Zelle, CashApp)—Convenient but risky

Mobile payment apps make secure online payments simple and fast, especially for sending money to friends and family. These apps connect directly to your bank account, credit card, or app balance, allowing for instant transfers without needing cash. Some, like Venmo and Cash App, even offer physical debit cards for purchases or ATM withdrawals.

While mobile payment apps provide convenience, they also come with security risks. Many transactions lack buyer protection, and some apps, like Venmo, have public transactions by default, making them a regular target for scammers and fraudsters.

Security benefits:

• Encrypted transactions: Some apps use end-to-end encryption to protect payments from interception.
• Multi-factor authentication: Most apps require passwords, PINs, or biometric authentication before sending money.
• No need to share banking details: Payments are sent using an email, phone number, or username, keeping your actual account details private.
• Direct account linking: Zelle connects directly to your bank, reducing exposure to third-party breaches.

Security risks:

• High scam risk: Fraudsters often target mobile payment apps with phishing scams, fake payment requests, and refund fraud.
• Public transactions: Venmo transactions are public by default, making it easier for scammers to profile and target users.
• Limited fraud protection: Unlike credit cards, most mobile payment apps don’t allow chargebacks, making it harder to recover stolen funds.
• Account takeovers: If someone gains access to your app login, they can transfer money before you have time to react.
• Potential fees for transfers: Some apps charge fees for instant withdrawals, adding a cost to security-conscious users who move funds quickly.

7. Biometric payments—The future of secure transactions

Biometric payments use fingerprints, facial recognition, or iris scans instead of passwords or PINs to authenticate transactions. Since biometric data is unique to each person, it allows for secure online payments and reduces the possibility of anyone stealing your credentials.

Many digital wallets and mobile payment systems, like Apple Pay and Google Pay, already support biometric authentication. As technology advances, biometric payments are becoming more common in physical stores, banking apps, and online transactions, improving both security and convenience.

Security benefits:

• Difficult to fake or steal: Biometric data is almost impossible to duplicate as it’s inherently personal.
• Eliminates password theft: Since payments rely on fingerprints or facial recognition, you don’t have to worry about anyone stealing your password.
• Faster, more secure checkout: No need to enter PINs or credentials, reducing exposure to keyloggers or phishing attacks.
• Works with existing security layers: Many systems combine biometrics with encryption for even stronger protection.

Security risks:

• Biometric data can’t be changed: If stolen, you can’t reset a fingerprint or face scan like you would with a password.
• Relies on third-party security: If a payment provider suffers a data breach, your biometric data could be exposed.
• Limited adoption: Not all platforms support biometric payments, requiring traditional methods as a backup.

8. Prepaid cards—Anonymous and controlled spending

Prepaid cards function like debit cards, but instead of linking to a bank account, they store a preloaded amount of money. Once the balance runs out, you need to reload the balance to use it again. This makes them an excellent option for budget control and reducing financial exposure when shopping online.

Unlike credit and debit cards, some prepaid cards don’t need your personal details, making them one of the best anonymous payment methods. If you buy them with cash, they offer an additional layer of privacy, keeping transactions separate from your bank account. However, not all prepaid cards are truly anonymous as some require registration or a shipping address to activate.

Security benefits:

• No direct link to personal banking details: Transactions aren’t tied to your bank account, so fraudsters wouldn’t be able to access it after a breach.
• Limited financial risk: If stolen or hacked, only the preloaded balance is at risk—not your entire bank account.
• Can be purchased with cash: When bought in person, prepaid cards provide better anonymity for online transactions.
• Reduces exposure to identity theft: Since transactions don’t use personal financial data, the risk of identity theft is lower.

Security risks:

• Not fully anonymous: Some prepaid cards require registration, a billing address, or ID verification for online use.
• Limited fraud protection: Unlike credit cards, prepaid cards don’t offer chargeback options if you’re scammed.
• Risk of counterfeit or stolen cards: Fraudsters sell fake or compromised prepaid cards, so buy them only from trusted retailers.

9. ACH payments—Used for business transactions

ACH (Automated Clearing House) payments transfer money directly between bank accounts, eliminating the need for credit cards or paper checks. Businesses often use ACH for payroll deposits, recurring bill payments, and large transactions. Since banks process these transfers through a regulated network, ACH payments offer strong security and lower fraud risks than traditional card transactions.

Because ACH transfers don’t involve card details, they stay safe from retailer data breaches. However, hackers can still target stored banking details, and reversing an ACH transaction is much harder than disputing a credit card charge.

Security benefits:

• Strict financial regulations: Banks have to follow security protocols to prevent unauthorized transactions.
• No card details required: ACH transfers rely on bank account and routing numbers, keeping credit card information safe.
• Two-factor authentication: Many banks require additional verification before processing ACH payments.
• Harder to intercept: Since ACH transactions aren’t processed in real time, they’re harder to manipulate than instant transfers.

Security risks:

• Leaves banking details vulnerable: If a hacker gains access to your account, they can exploit your details and initiate ACH withdrawals.
• Difficult to reverse: ACH payments don’t come with buyer’s protection or chargeback options.
• May delay fraud detection: Since ACH transfers take one to three days, you may not notice malicious activity until it’s too late.

10. Gift cards—A safe but limited option

Gift cards provide a simple and low-risk way to pay online without linking to a bank account or credit card. They work like prepaid cards but come with a fixed balance and, in many cases, can’t be reloaded. Since they don’t require personal banking details, they offer a level of privacy and fraud protection that traditional payment methods don’t.

Despite their security advantages, gift cards have limitations. They aren’t universally accepted, and if lost or stolen, they’re nearly impossible to recover. Some also expire or come with hidden fees, reducing their value over time.

Security benefits:

• No banking details needed: Since gift cards aren’t tied to personal financial accounts, they minimize the risk of banking fraud or identity theft.
• Limited financial loss: You lose only the prepaid amount a gift card stores if a hacker steals it from you. 
• Good for anonymous purchases: Some gift cards, especially those bought with cash, allow for near-anonymous purchases.

Security risks:

• Susceptible to scams: Gift cards are a common target for scammers who trick victims into buying and sharing gift card codes as a form of “payment.”
• Potential for fraudulent sales: Scammers may sell counterfeit or already-used gift cards, leaving buyers with worthless balances. 
• Lack of recovery options: If a gift card is lost or stolen, the funds are typically unrecoverable, unlike credit cards that offer fraud reimbursement.

Best practices for secure online payments

Even the safest payment methods won’t protect you if you’re not careful. Cybercriminals always look for weak spots, so one wrong move could end up paying for someone’s shopping spree. That’s why you need to stay proactive when making secure online payments.

Use strong, unique passwords for payment accounts

If your password is weak or reused across multiple accounts, a hacker only needs one data breach to get into your PayPal, banking apps, or digital wallets. Once inside, they can make purchases, transfer funds, or even lock you out of your own account.

The best defense is a strong, unique password for each account. It should be long and unpredictable, mixing letters, numbers, and symbols. Avoid obvious choices like birthdays, pet names, or anything a hacker could guess with a quick glance at your social media. 

Instead of trying to memorize dozens of complex passwords, use a password manager to generate and store them securely. Taking a few extra minutes to set this up can save you from a major financial headache down the line.

Enable multi-factor authentication (MFA) on payment apps

A strong password is important, but it’s not enough on its own. Multi-factor authentication adds an extra security step when logging into your payment accounts, making it much harder for hackers to break in.

Most secure payment methods, including PayPal, Venmo, and banking apps, let you turn on MFA in your account settings. Once enabled, the payment app will require both your password and a second factor, like a code from an authentication app, to log you in. 

Authentication apps like Google Authenticator or Authy are better than SMS-based verification. Cybercriminals can hijack phone numbers through SIM swapping when they transfer your number to a new SIM card. Once they take control of your phone number, they can intercept your one-time authentication codes and take over your payment apps.

Encrypt your connection with a VPN for extra security

Public Wi-Fi, shared networks, or even an unsecured home connection can expose even the most secure online payments. Hackers can then use man-in-the-middle attacks to intercept and steal your payment details before they reach a website.

A Virtual Private Network (VPN) encrypts your traffic, blocking hackers, ISPs, and other third parties from spying on your transactions. Anyone lurking on the same network will see scrambled data—not your credit card number, banking credentials, or PayPal login. A VPN also hides your IP address, preventing websites from manipulating prices based on your location.

With ExpressVPN, your online payments stay private, secure, and lightning-fast. Our best-in-class encryption and high-speed global servers ensure you never have to choose between security and performance. Whether in a café, traveling abroad, or at home, ExpressVPN gives you the confidence to shop, bank, and pay online without worry.

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Monitor your accounts and report unauthorized transactions

Many people only check their bank statements at the end of the month, but by then, fraudulent charges may have already gone unnoticed for weeks. Keeping an eye on your transactions helps you catch suspicious activity early.

Set up real-time alerts to immediately find out about any unusual charges that appear on your account. If anything suspicious happens, report it to your bank or payment provider right away. Most financial institutions have fraud protection policies, but the faster you act, the better your chances of recovering lost funds. If necessary, freeze or cancel your card to prevent further unauthorized charges.

Avoid making payments over public Wi-Fi

Public Wi-Fi is convenient, but it often lacks encryption. This lets cybercriminals meddle with your secure online payments and quietly steal your logins, banking details, and credit card numbers.

If you need to check your account or make a payment over public Wi-Fi, don’t do it without protection. Using a VPN encrypts your connection, keeping your transactions private even on unsecured networks. If a VPN isn’t an option, switching to your mobile data network is generally a safer alternative.

Another simple way to stay secure is to check for HTTPS encryption before entering payment details on a website. A secure site will always have a padlock symbol next to the URL—if you don’t see it, don’t enter your payment details.

How to spot and avoid online payment scams

Cybercriminals are always finding new ways to trick people out of their money. Some scams are highly sophisticated and designed to mimic real businesses almost perfectly, while others rely on quick deception to catch you off guard. Understanding them makes it easier to spot red flags.

Phishing scams—Fake websites and emails

Phishing scams are one of the most common ways hackers steal payment details. These scams often arrive in the form of fake emails, text messages, or websites disguised as trusted companies. The goal is to trick you into entering your login credentials or credit card details on a fraudulent website.

To stay safe, never click on links in unexpected emails or messages. Instead, go to the company’s official website by typing the address manually. If an email asks for sensitive information, it’s likely a scam—legitimate businesses never ask for passwords or payment details via email.

Social engineering—When scammers manipulate you

Some scams need you to trust the wrong person and give up information willingly. Scammers may pose as customer service agents or friends in trouble, creating a sense of urgency to make you act fast.

The golden rule? Stay skeptical. If you get a call, text, or message asking for financial information, don’t take their word for it. Instead, hang up and call the company directly using their official contact details. And if a “friend” suddenly asks for money, double-check with them through another method before sending anything.

Too-good-to-be-true deals—Identifying fraudulent sellers

If a deal seems too good to be true, it probably is. Scammers often set up fake online stores or list high-demand products at unbelievably low prices to lure in buyers. Once you pay, you might receive a counterfeit item, a completely different product, or nothing at all.

Common red flags include vague or missing contact information, no customer reviews, and pressure to pay quickly. You should also watch out for any payment requests via cryptocurrency, wire transfers, or gift cards as they are nearly impossible to reverse.

Before buying from an unfamiliar website, do your research. Check customer reviews on sites like Trustpilot, verify that the site uses HTTPS encryption, and look for clear refund and return policies. When shopping online, always use secure payment methods like credit cards or PayPal, which offer dispute resolution and fraud protection.

Protecting yourself from identity theft

Identity theft can wreck your finances with attackers posing as you to drain your accounts, rack up debt, or open fraudulent accounts. You can fight back by using strong passwords, enabling multi-factor authentication), and keeping an eye on your bank statements and credit reports. 

Another key step? Keeping your connection secure. ExpressVPN’s Identity Defender (available to ExpressVPN users in the U.S.) adds extra protection by monitoring for identity fraud, removing personal data from data broker sites, and offering ID theft insurance in case of financial loss. And when you browse or shop online, ExpressVPN encrypts your traffic, blocking hackers from spying on your transactions or stealing your credentials.

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Final thoughts: How to keep your payments secure

Secure online payments aren’t just about choosing the right method—it’s about staying proactive. Cybercriminals are always evolving their tactics, so it’s essential to follow best practices and use the latest security features.

Always verify website security before entering payment details

Before entering your credit card details or logging into a secure online payment account, take a second to verify the website’s security. Look for HTTPS in the URL and a padlock icon in the address bar—these indicate the site is encrypted and safer to use.

Be cautious of websites offering unrealistically low prices, vague contact details, or poor customer reviews. If something feels off, it’s better to step back and research before buying. To minimize risk, use trusted payment gateways like PayPal and opt for credit cards or digital wallets. These offer better fraud protection, giving you an extra layer of security if something goes wrong.

Keep your payment methods updated with the latest security features

The best secure payment methods come with built-in security tools. Banks and payment providers regularly update their fraud detection and authentication features, so make sure you’re taking advantage of them.

Use multi-factor authentication, biometric logins, virtual cards, and real-time fraud alerts for extra protection. If your bank offers temporary card numbers or spending caps, enable these features to further reduce your exposure to fraud.

Don’t forget to keep your apps and passwords updated too. Using outdated software or weak passwords can leave you vulnerable, even if your payment method is secure.

Stay informed about new online payment threats

Cybercriminals constantly develop new ways to target online transactions, from phishing scams to fake payment gateways. The more you know about emerging threats, the better you can protect your online payments and find safe ways to pay.

Follow cybersecurity news, enable transaction notifications, and regularly check for security updates from your bank or payment provider. If you receive an unexpected payment request or a message asking for financial details, always verify it before taking action.