Using Debit Cards for Online Shopping
To shop online using a debit card, you will need to enter the 16-digit card number along with the expiration date, security code, and billing address.
The amount for the transaction will be deducted from the checking account linked to the debit card. If you do not have a debit card, contact your bank to add one to your existing checking account, or visit a local bank to open a new account and request a debit card.
Warning: One of the disadvantages of making purchases with a debit card is the lack of security. When it comes to fraudulent activities, debit card users may be held liable for those transactions.
Shopping with Prepaid Cards
Prepaid cards are similar to debit cards, except that funds are loaded onto an account linked to the card instead of a checking account. Make sure that the prepaid card carries the logo of major credit card networks like Visa, MasterCard, Discover, or American Express.
Prepaid cards are a great option for those who cannot or do not want to have a checking account or credit card. You can apply for a prepaid card online or visit a retailer such as CVS, Walgreens, or Walmart.
Paying with Gift Cards or Store Credit
Gift cards that carry the logo of major credit card networks like Visa or MasterCard can be used at any online store that accepts payment from that network. You can also use a specific gift card for online shopping, but this is usually only available at the retailer’s own website. For example, a gift card from Macy’s can only be used at Macy’s.
You can purchase gift cards in the same places where prepaid cards are sold. Many of these locations also sell specific store gift cards, but of course, you can also buy them directly from the retailer.
Note: While you may be able to recover most stolen funds from your checking account if you report fraud in a timely manner, gift cards do not offer the same level of protection.
Amazon Cash Redemption
Amazon Cash allows you to shop on Amazon.com without a credit or debit card. Simply add cash to your Amazon balance at participating locations. You can scan the unique barcode or use your mobile number to identify your account and add an amount ranging from $5 to $500 for use in shopping on Amazon.
Paying with PayPal or Other Merchant Accounts
You can link your PayPal account to your checking account, and any purchases you make via PayPal will be deducted from that checking account.
If you have a PayPal balance, purchases will generally be deducted from that balance first and then from your checking account. The PayPal website has a list of online stores that accept PayPal as a payment method.
Other companies similar to PayPal, such as Venmo, also provide options for making online purchases. Paying via Venmo offers some buyer protection through the Venmo Purchase Program.
Important: Many online merchants are now partnering with third-party lenders so customers can “buy now and pay later.” In these cases, customers can make purchases using an installment loan at checkout when shopping online.
Carrying a Digital Wallet
A digital wallet is simply a way to store your payment information virtually. While PayPal and Venmo are types of digital wallets, there are many other wallets, including Apple Pay and Google Pay.
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Using a digital wallet for online purchases, you will need to use a device (such as a smartphone, tablet, or computer) that has your digital wallet. At checkout, participating merchants will provide you the option to pay using your wallet.
Digital wallets utilize technology called “tokenization,” which creates a unique token each time you make a purchase. The merchant does not see your card number, and even if the token is stolen, the thief will not be able to use it for purchases.
Buying with cryptocurrencies
Some merchants – like Microsoft and AT&T – accept payment in cryptocurrencies. Cryptocurrencies such as Bitcoin and Ethereum are digital currencies that can be exchanged online for goods or services. To use cryptocurrencies for online purchases, you first need to set up a private digital wallet. You’ll then be able to make trades with cryptocurrencies.
Users can not only make purchases without the need for a traditional bank account, but there’s no requirement to provide any personal information, which can be a security advantage. Many cryptocurrency users appreciate the greater sense of independence in their purchases.
On the other hand, cryptocurrencies are still relatively new. This means they face high volatility levels, and the lack of regulation can be concerning for some people.
Using your checking account
Although it may be less common, some online merchants allow you to use your checking account and routing information to make purchases. Check the payment options available to the merchant to confirm the possibility of using your checking account verification information.
Purchases made from a checking account are typically done through electronic funds transfer (EFT), which transfers money digitally from one account to another. They are regulated under the Electronic Funds Transfer Act (EFTA), which aims to protect consumers.
Warning: Always ensure you are browsing a legitimate website. If hackers gain access to your checking account, they could steal your money.
Borrowing someone else’s card
You might have a friend or relative willing to let you use their credit or debit card for online purchases in exchange for paying them back afterward. When using this option, make sure to enter the correct billing address so that the payment is processed correctly.
Frequently Asked Questions (FAQs)
How common is shopping online?
According to the Census Bureau, e-commerce sales account for more than 13% of total sales.
What does “USD” mean when shopping online?
If you’re shopping on an international site, you might see “USD” next to some prices to clarify that the prices are listed in U.S. dollars. If you’re American and see USD, the purchase will be like any other purchase you’re used to. If you see a symbol or another abbreviation next to the price, you may need to do a quick conversion to find out the price in U.S. dollars.
Source: https://www.thebalancemoney.com/how-to-shop-online-without-a-credit-card-960981
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