If you ever shopped online, you probably stopped to think about how online payments work. Well, they are rather simple, but also complex. If you want to purchase something online, and you’re wondering whether your information is safe, you should take note of how those transactions work.
Online Payments – Credit Cards
If you want to pay with a credit card, you need to enter some details for every payment. You need to enter your credit card number, the name of the card’s holder as well as the card verification value or code, otherwise known as the CVV or CVC. It is usually a 3 number code. Once you enter those credentials, in just an instant, the data you entered will be checked against those of the bank, to see whether you entered the right credentials.
If you have enough currencies, the transaction will proceed, and you will probably get a notification of a successful purchase, on both your email and your phone, if you have activated that notification system with your bank.
Online Payments – Payment Services
The way payment services work is similar to a real bank, except you do not have a real bank account. You have a digital account and you cannot go into the red zone. PayPal, Payoneer or Skrill, all work in a similar fashion. Payoneer and Skrill offer debit cards which you can use at ATMs or at any store to get cash or pay for your purchase.
Payment services work in a similar fashion, by you entering your credentials, if they are tied to a card, like Payoneer and Skrill cards or by logging in, as you do with PayPal. You most likely will have a two-step authentication method setup, so you should log in, and confirm a code sent to your mobile phone. That way, someone with just your password won’t be able to do anything as they do not have your phone number.
General Safety Tips
When paying online, you should take note of the site’s address. Many people gave away their credentials, both to their credit cards and their social network accounts, because they were sent to clone sites of big brands like Facebook or PayPal, through some malicious link. Read the URL and make sure that you are in the right place.
Likewise, take note of whether a site’s connection is secure, by looking for a padlock to the left of the URL or an S next to the HTTP. Especially do this when purchasing from sites you are unfamiliar with.
This is everything you need to know about online purchases. Follow the security tips and you ought to stay safe when online shopping.