Paying online
In this chapter, we'll go through some of the payment options you might come across online while shopping and making payments.
We can't advise you on the 'best' way to pay. The best way to pay is a completely individual choice and you need to decide what best suits you. What we can do is make you aware of some of the common examples of ways to pay and some of the features, benefits and things to consider. So, when it comes to making your choice, you will feel better equipped to make the right one for you and begin making payments online.
What to expect
When you've finished shopping for goods and services online you need to 'checkout'. This is like checking out in real life, but it happens right there on the website or in the app you are using. In this next section, we will be covering the payment aspect of checking out, but if you want to know more about shopping online or checking out, you can take a look at our lesson on 'Shopping online'.
When you get to the point of payment, you will usually be offered a range of payment options. What you are offered will depend on the website, the company and what they are willing to accept as payment. So, often having more than one way to pay set up will ensure you are able to purchase through all online shops. However, having a credit or debit card will usually mean you can buy from almost all shops. Let's take a look at this payment option first.
Credit and debit cards
Debit and credit cards are both commonly used ways to pay, both in store and online.
A debit card allows you to transfer money electronically from your bank account to the account of the business or person you are buying from. This spend will show up almost instantly on your online banking spending. It may take a day or two to actually leave your account.
A credit card is another type of payment card. The difference is that instead of taking money from your account, you are using money borrowed from your provider. This could be a bank, a credit card company or a credit lender. You will then pay the provider back for this at a later date.
You may be charged interest for borrowing this money. This will be made clear when you apply for the card. Your provider will usually give you a limit on how much you can spend and ask for a set amount to be paid back in a given period of time.
To pay using these cards, you will be asked to enter some details on the website or app you are using. These are typically your name (as written on the card), your card number and your card security code. The card security code is the 3 numbers that are typically written on the back of your card next to the signature strip. This is sometimes also known as a CVV.
Once you've entered your details, you can make sure everything is correct before you press purchase. You may then be asked to do an extra security check by your bank, so you should follow the instructions on screen. Once your purchase is made, you can check your bank account to make sure the account you expected has appeared on your account.