Using your debit card online sure is convenient and second nature, but is it secure? Don’t worry, there are a plethora of ways to keep your money safe. Here are some tips on how to avoid scams and enjoy online shopping.

According to the Australian Bureau of Statistics, 8.1% of Australians experienced card fraud, 2.7% experienced a scam, 0.8% experienced identity theft, and 2.5% experienced online impersonation in 2021-22. In fact, according to a Juniper Research global study, it is estimated that e-commerce payment fraud losses will reach $48 billion in 2023. Thankfully, banks and payment processors have several ways to protect your debit card online.

How Banks Protect Your Debit Card Online

Debit cards sure are a convenient way to shop online without going into debt. Because they are linked to your main bank account and only let you spend the money you have available, you won’t incur interest charges like credit cards. But much like their counterpart, there’s several ways banks are keeping our debit card details safe.

Encryption

Basically this means that any information you put into the website is scrambled. This means that only the intended recipient can read it. This makes it difficult for hackers to intercept and potentially steal your card details.

TIP – Look for a padlock icon or “https” in the address bar of the website to see if your data is encrypted.

Authentication

Websites must do everything possible to verify your identity before allowing you to transact. This might be in the form of address matching, one-time codes or if you’re on your phone, using your biometrics. Some banks will also use their app to send you a code also. The authentication process makes it harder for fraudsters to use your card without your permission.

Fraud detection

Most banks have huge fraud detection departments and sophisticated algorithms that monitor your transactions to detect any instances of fraud. They actively monitor your card activity and alerts you if it detects any unusual or suspicious transactions. You might get an SMS, a call or a notification. Your bank may temporarily block your card if the risk is too high. Active fraud detection certainly makes it easier for you and the banks to spot and report any unauthorised charges on your card.

Debit Cards vs Credit Card Fraud Protection

It’s important to note that fraud detection on credit cards and debit cards differs in some ways, and this is mainly due to the source of the funds. Debit cards spend your money, and credit cards spend the providers money.

Credit cards also have far less of an impact on your cash flow than debit cards. When a fraudulent transaction occurs on your credit card, it does not affect your bank balance (until you pay your bill). But, you can dispute the charge and get it reversed before it affects your cash flow. When it happens to your debit card, it immediately reduces your bank balance. You’ll have to wait for the bank to investigate it, and then hopefully refund your money. You’ll be out of pocket for this whole time.

Stay safe

So, unless you refuse to use your debit card online it’s important that you shop safely.  If you think it may be risky, stick to using your debit card for everyday spending and ATM withdrawals.

But, if you shop safe and be vigilant with the websites you’re using, you can do as much as you can to keep your details safe. Happy shopping!