There has always been a need for secure payment methods to facilitate offline and online financial transactions. With the growth of e-commerce, the requirement has become even more apparent than ever. The threats of online fraud or identity theft are a matter of real concern and that is why security should be on top of your list when selecting a payment method. However, given the many available payment options, how to select the most secure one?

Secure Payment Methods

The following payment methods emphasize security and are likely to keep your details safe:

Automatic Clearing House Payments

Automatic Clearing House (ACH) payments are electronic payments made through the ACH network. The federal government regulates this network and the strict network rules ensure that the transfer of money from one bank to another can take place while keeping the account details confidential. The ACH payment method protects sensitive personal information by using tokens and data encryption. Only the intended recipient can access the encoded data.

Debit and credit cards

You can use debit and credit cards to make online payments without compromising your data security. With a prepaid debit card, you can make a secure payment and not risk the money in your bank account. Since a credit card lets you pay for your online purchases when the credit card bill is due, it gives you a chance to monitor it for suspicious activities and prevent unwarranted financial deductions from your account. Before making any online payments, check if there is a padlock symbol in the left corner. It means the online transaction will be secure.

Payment apps

Payment apps are useful for transferring funds digitally without relying directly on debit cards or credit cards. You can link the payment app to your bank account or credit card and authorize the app to transfer money from the account for quick, online payments. The benefit of paying with a payment app is that you do not need to carry around your credit card or enter your bank account details every time you want to make an online purchase or transfer funds to someone.

It is essential though to take some commonsensical steps to keep your transactions secure. Use a strong password that people will not be able to easily guess and be vigilant about malware or spy programs.

eChecks

eChecks work in the same way as traditional paper checks. You need to select an electronic payment processor with stringent encryption standards for data protection and fraud prevention. After issuing the eCheck, the payment processor will transfer funds from your bank account to the bank account of the eCheck recipient.

Gift Cards

Physical or electronic gift cards are available for purchase from various retailers. You can transfer any amount you want from your bank account or credit card to the gift card. After you give this prepaid gift card to someone, they can use it to make in-store or online purchases with the retailer that provided the gift card.

The transaction will be safe and limited up to the funds available in the gift card. Neither the gift card recipient nor the retailer will have access to your sensitive bank account or credit card details. However, the recipient will have to take care not to lose the gift card before they spend it, or else the money will be lost too.

Traditional checks

Traditional checks are still in use even with the growth of online banking and can be convenient for one-time payments. Banks offer many security controls for processing checks, so the transactions can be safe. There may be opportunities for fraud though since checks bear your name, address, bank account number, bank routing numbers, and signature. To stay safe, it is advisable to only pay by cheque if you are paying people or organizations you know you can trust. You should also monitor your bank account to make sure there are no untoward check withdrawals.

Cash

There are no security risks with paying with cash. You do not have to provide personal information or worry about identity theft. There may be concerns with carrying around a lot of cash, but it can be convenient to pay in cash for smaller transactions.