Overview and security of various payment methods used while shopping on the Internet
Posted: Mar 10, 2019
The Internet has changed not only people's buying habits, but also paying. Bank vendors can pay on the internet via their current account through various payment methods
Three out of every four Internet users shop online. Understandable, because the selection is large, there are no shop opening hours and the desired product is conveniently delivered to the front door. But when it comes to money, even black sheep lurk. A basic requirement for smooth and risk-free shopping on the Internet is secure, inexpensive and easy-to-use payment methods. As a buyer, you can now find a wide range of payment options: from prepayment, direct debit and purchase on account via "electronic" payment options, such as credit cards and Paypal, to Internet-based payment methods, such as the instant bank transfer.
On platforms like eBay, you can often pay in advance. This means that the seller will tell you his bank details and then send him the money by bank transfer. This is relatively safe in itself, since in this case can not be deducted by the seller more money than agreed. There are two draw backs : you can not easily undo a self-made bank transfer, and the recipient can also see your bank details on receipt.
Often, the numbers are also offered by direct debit or direct debit. To do so, enter your account details with the provider and allow him / her to debit your account through a so-called SEPA mandate. A major disadvantage of this payment method is that you have to disclose your account information online. If you do this with a dubious seller, this could misuse your data. However, you can undo the debit from your bank within eight weeks and are therefore on the safe side with this payment method.
On many websites (i.e. online Pharmacy ) you can also pay directly by credit card. Especially with purchases in foreign online shops you often have no other option, as no other payment method is offered. But paying with a credit card involves some risks: in theory, the seller could abuse your credit card details. Often this credit card fraud is only on the monthly billing - and then it is probably already too late.
An alternative option for online payment is offered by GiroPay. At GiroPay you do not have to create an account, but choose the service in the online shop as a payment option. If your bank works with GiroPay, then you can log in as normal with your online banking data. The entire transaction runs through your bank. Thus, your account information will not be transmitted to the merchant. Only in the case of a return and the associated reimbursement will your bank provide the merchant with your IBAN.
Similar to GiroPay, the online transfer service iDeal also works. All you have to do is enter your IBAN and perform two-factor authentication. A major disadvantage of iDeal, however, is that you are not granted any buyer protection at all. If you pay with this method and fall for a fraud, there is no possibility of a refund. Nevertheless, some banks use this system. Most of them are not larger German banks but foreign banks. An exception is the bank ING.
PayPal is a particularly easy way to pay on the Internet. With this service, you'll need to create an account that you either directly load money or link to your bank account or credit card. A big advantage of PayPal is Buyer Protection: If you have been the victim of fraud, you have 180 days to report it to PayPal and get your money back. However, this buyer protection does not always apply, because in any dispute PayPal has to decide for itself whether the chargeback should occur. But the biggest advantage of PayPal is that your bank details are not forwarded to the seller. He only sees the e-mail address your PayPal account is linked to. For more information about PayPal security, click here.
Another option is cash on delivery. This means that you pay your ordered items on delivery directly to the parcel delivery service. This avoids the risk that an order will not be sent to you despite payment and that you keep your bank details out of the Internet. However, you must always have enough cash in the house to pay for your items. Also, you can not review the product before you hand over the money.
An alternative to the regular payment methods are prepaid cards, which you can easily buy in various shops. These have the advantage that you do not have to publish your confidential data online. However, most prepaid cards only come with pre-made amounts. So you probably always have a small balance on your customer account of the online shop. This is particularly annoying when it comes to a one-time purchase.
In addition to the vendor-specific prepaid cards, there is also the paysafecard. You can also do this too certain amounts in the retail sector. The disadvantage is also here that it is prefabricated amounts. In addition, many large providers such as Amazon or eBay offer so far no direct way to pay with the paysafecard.