There are several ways through which you may pay to buy that favourite item, purchase of which you might have delayed to enjoy additional discounts during online sales. The popular way to pay for online shopping is cash on delivery, followed by payments through debit card, credit cards, mobile wallets and Net banking.

However, banks are insisting their customers using magnetic tape-based debit and credit cards to change to chip-based cards to curb the increasing menace of counterfeit (skimming) card fraud, which is also known as card cloning. Cloned cards are then used to make purchases or to withdraw cash without knowledge of the original card holders. By the time an aggrieved customer gets the information, a substantial amount may already be spent or the entire bank balance may get wiped out.

As ATM-cum-debit cards are linked directly to bank accounts and are swiped frequently to withdraw money, they are considered riskier than credit cards. This is because, once the money is wiped out of your bank, it will be your duty to prove that you are not at fault to claim back the money, while in case of a fraud involving a credit card, it will be the issuer’s headache to prove that you are at fault to get the payment. So, if you are using a magnetic tape-based card, it’s better to convert it to a chip-based card as soon as possible. Moreover, thankfully, debit cards are not the only mode of payment. You can also use several other modes of payment such as virtual cards, credit cards, cash on delivery, mobile wallets and Net banking, among others.

Although, about 16 per cent of payments for online transactions are done through it, you may still just junk your ATM-cum-debit card and use a virtual card for online instead. For withdrawing money, you get a plain ATM card with cap on withdrawal issued, which is free of cost and can’t be used for online fraud.

Here are the other methods of payment you may use for online transactions:

Virtual cards: These cards are considered safe because you have the authority to set cash limit and expiry date of the card. By this way, you don’t have to compromise your debit or credit card details and may do online shopping or pay bills within the prepaid cash limit and expiry date. If the full amount is not used within the expiry date, the balance amount will be credited back to your bank account. You may also cancel a virtual card any moment and get the amount back to your account.
Some banks are also issuing virtual debit cards, which may be accessed after a customer logs in through Net banking app and may be used for online transactions. However, the holder of the virtual debit card can’t swipe it for cash withdrawal or shopping.

Credit cards: In case you don’t want to prepay for the transaction, you may use your credit card online. About 12 per cent of payments for online transactions are made through credit cards and you may enjoy the credit limit till the due date of payment of the card bill. However, remember not to overspend and to pay the entire bill amount within the due date to avoid paying interests.

Cash on delivery: The most popular option to pay for online transactions is cash on delivery, which consists of about 50 per cent of all payments. The advantage of cash on delivery, if the option is available, is that you don’t have to suffer for delay in delivery or wrong delivery or cancellation of the order. Moreover, you may check if the right product has been delivered and is in proper condition before paying the cash.

Mobile wallets: As the use of smart phones is rising rapidly, people want to do maximum things, including online shopping and paying for the same through mobile phones. About 11 per cent of people use mobile wallets for online transactions and the number is increasing rapidly due to its convenience. As you have to transfer an amount to mobile wallet before paying through it, the chance of loss due to any fraud will be limited, provided you didn’t transfer excessive amount to the wallet.

Net banking: About 10 per cent of payments for online transactions are done through Net banking because of the ease of payments and sometimes due to absence of other options of payments. For example, for payment of credit card bills or payment of income tax, hardly any options other than Net banking are available. However, for online shopping or where it is admissible, virtual cards instead of Net banking may be used for more security.