The safest (and riskiest) ways to pay online and in person

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All payment methods involve some degree of risk, whether from human error, financial fraud or identity theft.

Financial losses from fraud involving credit, debit, and prepaid cards totaled $33.41 billion worldwide in 2024, according to a 2026 Nilson Report study, and are projected to reach $41.06 billion by 2030.

Understanding the risks associated with different payment types can help you save money, time and stress.

Below, we break down the most secure payment methods, as well as those that carry the greatest risk.

According to U.S. Department of Commerce data, nearly $327 billion was spent via e-commerce in the U.S. in the first quarter of 2026. As online payments continue to trend upward, it's critical to protect your information.

1. Digital wallets

In 2025, digital wallets like Apple Pay, Google Pay and PayPal accounted for roughly 40% of U.S. online spending and 17% of in‑store spending, according to research from Global Payments, which forecast 10% growth in both areas annually.

Digital wallets offer many layers of security, like encryption technology, passcodes, biometric security and tokenization, which replaces sensitive card information with a unique, one-time-use code. Even if someone intercepts your token, it will already have expired.

Many experts consider digital wallets safer than using a physical credit card because they don't share your real card number with merchants.

Most digital wallet platforms require Face ID, fingerprint or passcode to use, so even if someone steals your phone, they can’t make purchases without unlocking it. A credit card can be used until you report it lost or stolen.

2. Credit cards

Credit card transactions are protected by multiple layers of security, including tokenization, encryption in transit and fraud monitoring.

In most cases, federal law limits your liability for unauthorized credit card charges to $50, even if you report the card lost or stolen after the charges occur. (Major card issuers often offer $0 liability.)

The Citi Simplicity® Card, one of CNBC Select's top no-annual-fee credit cards for balance transfers, offers $0 liability on unauthorized charges and access to Mastercard's ID theft protection program.

Many major credit card issuers now also let you request randomly generated virtual card numbers to further protect yourself when shopping online. If you have a Capital One card, such as the Capital One Venture Rewards Credit Card, you can request a virtual credit card number via the Eno browser extension.

Card numbers are merchant-specific, and you can lock, unlock or delete them at any time.

3. ACH payments

The Automated Clearing House (ACH) is a federally regulated electronic network that facilitates money transfers between banks. All you need to receive an ACH transfer is a bank account number and a routing number. (If you've received your paycheck via direct deposit, you've taken advantage of the ACH network.)

ACH payments go through clearinghouses that enforce strict regulations, making it a safer payment method. ACH also typically charges no or low fees because it's all digital and eliminates many of the processing fees associated with cards or checks.

It's great for consistent transactions with trusted people or institutions, such as rent or utility bills. But because of the risk of exposing your routing and account numbers, it should be avoided if you're not familiar with the recipient.

The financial services industry has made great strides in improving the security of in-person transactions. Most credit cards use tokenization to ensure that customer data is not exposed.

1. Contactless payment

Contactless payments, such as tap-to-pay credit cards and mobile wallets, use near-field communication (NFC) technology to enable payment with tokenization and dynamic encryption. Because the card never leaves your hand or touches a magnetic stripe, it eliminates the risk of physical skimming.

Most newer credit and debit cards include contactless technology. For example, all newly issued Wells Fargo consumer credit and debit cards, such as the Wells Fargo Active Cash® Card, and almost all Chase cards, including the Chase Freedom Unlimited® (see rates and fees), are contactless.

You can check whether your card is contactless by looking for a wave-like symbol on the front.

2. Chip-enabled credit cards

If contactless payment is not an option, consider a chip credit card, also known as an EMV card (named for Europay, Visa and Mastercard, the three companies that designed it). Instead of swiping your card on a magnetic strip, you dip it into a payment terminal. You may be prompted to enter a personal identification number (PIN) to verify that you are the card owner.

Chip cards generate unique codes for every transaction and are much harder to clone compared to magnetic stripe cards.

Many top rewards credit cards are equipped with EMV chip technology. The Blue Cash Preferred® Card from American Express is a great pick for safe grocery shopping, offering 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%).

3. eChecks

Essentially, a digital version of a physical check, an eCheck uses the same network as ACH payments. But while ACH payments are often for recurring payments, like rent or utilities, eChecks are commonly used for one-time expenditures.

Because they're less vulnerable to loss or theft, eChecks are inherently safer than physical checks. eChecks enjoy the encryption protection provided by the ACH system and, in certain circumstances, your payments can be reversed.

Since more behind-the-scenes work is required to complete the transaction, there may be higher fees associated with an eCheck.

While no payment method is perfect, some carry significantly more risks.

1. Gift cards

Nearly untraceable and irreversible, gift cards are a scammer's dream. Their codes can be used by anyone, anywhere, and there's no chargeback process or dispute mechanism — if someone asks you to pay with a gift card, it's almost certainly a scam.

The risks don't end there. Lost or stolen cards are rarely replaceable, and balances aren't FDIC-insured. If the issuing company goes bankrupt, the card is usually worthless.

2. Wire transfers

As with many of the risky payment methods on our list, wire transfers are nearly impossible to reverse once they're sent, even if fraud is discovered. Unlike credit cards, there are no chargeback rights or consumer protections, so banks have little obligation to help recover lost funds.

Wire transfers are widely used in romance scams, real estate fraud and business email compromise (BEC) schemes. Any unexpected or urgent request for a wire transfer should be a serious red flag.

3. Cryptocurrency

Decentralization is crypto's biggest selling point, but it's also its greatest vulnerability. The largely unregulated environment puts it at risk for scammers, exchange collapses and market manipulation.

There's no bank or central authority to turn to, and once a transaction is complete, it's irreversible — even if funds were sent to the wrong address.

4. Peer-to-peer (P2P) transfers

Bank transfers can take up to several days to complete, so apps like Venmo and Cash App are appealing if you want your money right away. But that speed makes them riskier: Payments are instant and typically can't be canceled once they're authorized.

They also have fewer consumer protections than credit cards and other payment methods.

Zelle, in particular, recommends against using it to transfer funds "if you don't know the person or aren't sure you will get what you paid for."

5. Money orders and cashier's checks

While they're often required for large purchases, money orders and cashier's checks carry inherent risks for both senders and recipients.

For senders, once a money order or cashier's check is cashed, the transaction is essentially irreversible.

For receivers, scammers will send checks for more than the amount owed (often for an online marketplace purchase) and request that the difference be wired back. Days (or weeks) later, it's discovered that the check was counterfeit, and the bank reverses the deposit — leaving you out the amount you wired.

Counterfeit cashier's checks can look very convincing, even to trained bank tellers.

6. Debit cards

A debit card is more secure than cash, but is still a relatively risky payment method because fraudulent transactions can directly affect your bank account balance.

How much fraudulent charges you're held liable for depends on how quickly you report the incident. If you wait more than two business days, you may be responsible for up to $500 in charges. If you wait more than 60 days after your statement is sent, you could be responsible for all unauthorized transactions that occur after that.

While paying with a debit card can help you avoid merchant fees, it's not as protected as other payment methods.

7. Cash

Because it can make you more conscious of your spending, some people prefer using cash over cards. However, cash can be easily stolen or lost and is virtually untraceable. You also miss out on the purchase protection other payment methods offer, as well as valuable credit card rewards and the chance to build your credit score.

One of the only positives of using cash is that your banking information and other personal data is not exposed.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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For rates and fees of the Blue Cash Preferred® Card from American Express, click here.