With the surge in online shopping, many consumers prioritize convenience over security, leading to increased risks, particularly with credit card fraud. While retailers require explicit consent to store card details, potential threats such as data breaches and phishing attacks exist. Larger e-commerce platforms generally offer better security measures, yet risks remain. Innovations like digital payment wallets and the upcoming “Click to Pay” standard promise a more secure and streamlined shopping experience by 2025, but caution is still advised.
Is It Safe to Save Your Credit Card Information for Future Purchases?
With the rise of online shopping, convenience often trumps security in the minds of many consumers. In the third quarter of 2024, over 50 million French individuals, representing 79% of the population, made their way to online retail platforms, with 84% opting to pay using their reliable credit cards.
This situation brings to light an intriguing paradox. Despite being the most popular payment method, credit cards are not the safest option for online transactions. In fact, fraud related to credit card payments occurs seven times more frequently online than in physical stores. Additionally, the process of entering payment information—including your name, the 16-digit card number, expiration date, and security code—can be cumbersome.
To streamline the checkout experience, some e-commerce platforms allow users to save their credit card details for future purchases, enabling one-click buying. But is this practice truly secure? Let’s delve into the details.
Understanding Consent in Online Transactions
It’s important to note that online retailers cannot store your credit card information without your explicit consent. This means they must provide an option for you to check a box to indicate your approval, and this box cannot be pre-selected.
There is one exception: if you subscribe to a premium service that includes benefits like free shipping or loyalty rewards, the site may retain your card number and expiration date by default. However, they cannot store the 3-digit security code, and they must make it easy for you to opt out of this arrangement. If a website does not follow these guidelines, it’s best to steer clear.
For those looking for the best deals, consider free or low-cost credit card options.
Beware of Data Security Risks
Handing over your credit card information to a third-party retailer does indeed carry risks. This practice should be avoided on sites where you don’t plan to make regular purchases, particularly with smaller, specialized retailers. The situation can be different for larger, well-established e-commerce sites that typically have more robust security measures. Nonetheless, risks persist.
One significant concern is if a cybercriminal successfully gains access to your account credentials—for instance, through phishing attacks—they can exploit saved data for fraudulent transactions. To mitigate this risk, many reputable retailers offer strong authentication features for customer accounts; it’s advisable to take advantage of these security measures.
Another potential threat is data leaks. While many top-tier merchants encrypt stored card information, not all do. Recent events have shown that even major companies are susceptible to data breaches.
Exciting Payment Innovations Coming in 2025
Fortunately, the future looks bright for online payment methods. The dilemma of whether to save your card number or manually enter it for each transaction will soon be a thing of the past. Users of digital payment wallets such as PayPal, Apple Pay, and Google Pay already enjoy a simplified checkout process, often requiring just a click or two to finalize their payment and delivery details. These methods are also highly secure, utilizing biometric authentication and “tokens” to safeguard your information.
Looking ahead, the anticipated launch of “Click to Pay“—a new online payment standard developed by major networks like Visa and Mastercard—is set to revolutionize the payment landscape. Its implementation in France is expected by 2025. Until then, exercise caution when it comes to your credit card information!
Stay informed about the latest innovations that will enhance your online shopping experience.
(1) Fevad, E-commerce audience barometer: 3rd quarter 2024. (2) Fevad, key figures 2024.