How to use a credit card for online shopping

Credit cards are a secure and simple way to pay online. Here's how it works and how to keep your information safe.

How to use a credit card online

  1. Check the website you're using is secure. There are 2 security signs to look for: the website URL should start with the letters "https" and there should be an image of a small padlock, usually in the top left-hand corner of the address bar.
  2. Hit the checkout with your items. Once you've selected the items to go checkout (it's sometimes an icon of a basket or shopping cart in the right hand corner of the screen).
  3. Enter your personal details. That includes your name, email and phone number.
  4. Select your payment method. You can choose debit or credit card (often the same option), or PayPal, Apple Pay, Google Pay, Samsung Pay.
  5. Enter your credit card details. Enter the name on the front of the card, the 16-digit card number, the expiry and the CVC or CVV number (the 3-digit number on the back).
  6. Confirm the purchase. Check the purchase amount and your details again before clicking "confirm", keeping in mind that shipping costs and other fees may have been added.
  7. Additional security measures. Depending on how your credit card or app is set up, you may have to enter a PIN or a one-off security code sent to your phone by SMS before the purchase is complete.
  8. Keep the receipt or confirmation email. Most online stores will email you a tax invoice. These details help you track your order and make sure the correct amount is charged to your card. You'll also need this to dispute the transaction if you don't get what you paid for.

How much does it cost to pay by credit card?

Some online stores apply a card payment fee or surcharge which you'll see at the virtual checkout.

But fees from your credit card provider will only appear in your account or on your statement. There are 2 main ones to look for:

Finder survey: How often do Australians use their credit card?

ResponseGen ZGen YGen XBaby Boomers
Daily4.49%5.71%6.25%4.83%
Monthly4.49%2.72%5.59%3.41%
Weekly4.49%13.86%10.86%13.64%
Less often2.72%2.63%1.7%
Only for emergencies0.54%0.33%1.42%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

Is it safe to pay with a credit card online?

While most online shopping goes off without a hitch, fraud and cybercrime does exist. Luckily, credit cards have some helpful safety features.

  • Fraud-monitoring services. A lot of credit card providers use 24-hour fraud-monitoring services to help detect and report suspicious activity. When something unusual is detected, the credit card provider will contact you to check whether you made the transaction.
  • Added verification steps. Services like American Express SafeKey, Mastercard SecureCode and Visa Secure help protect your card from unauthorised transactions. Partnered businesses ask for either a one-time code sent to your phone, or a password or security answer that you've set up previously.
  • Zero liability policies. A zero liability policy is a type of insurance cover that protects you from paying for fraudulent or unauthorised transactions. The fraudulent transaction will be refunded back to your account, usually after an investigation by your credit card provider
Richard Whitten's headshot
Our expert says: The extra security of shopping with a credit card

"If someone uses your debit card for a fraudulent transaction, or goods you pay for never show up, it's often fairly simple for your bank to reverse a transaction. But your mileage may vary. Shopping with a credit card gives you that bit of extra protection. Visa, Mastercard and American Express credit cards offer some form of zero liability policy or credit card. This protects you from unauthorised purchases and fraud. "

5 tips to help you stay safe when shopping online

Credit cards, websites and devices all offer different levels of protection when you're shopping online. But you can use these tips everywhere to get even more security.

  1. Check that the web address starts with HTTPS. This shows the page you're visiting is secured. You should also see a locked padlock. If it's not there, contact the store or read the privacy and security policy to find out what protection is in place.
  2. Look for contact details and refund/returns policies. Legitimate business websites include details you can use in case there are any issues. Before you buy anything, check for a street address, phone number and details of how to get a refund or return an item.
  3. Use a private, secure Internet connection. While lots of places offer free, public Wi-Fi, it is less secure than a personal, private connection such as the one you would have at home. According to the Australian Cyber Security Centre, some criminals have even set up public Wi-Fi connections as a way to steal peoples' bank or card details, as well as other personal information.
  4. Keep track of where you save your card details. It might be convenient to save your credit card details with websites and apps, but it means your card information will be stored by a third-party service and could be at risk.
  5. Go through your transaction history. This will help you spot suspicious activity. You can check your transactions by logging in to your account or going over your monthly credit card statement.

How to choose a credit card for online shopping

If you're looking for a credit card to use online, here are some of the card types and features that could benefit you:

  • No currency conversion fees. If you often make purchases from online merchants that are based overseas, you should consider a credit card that doesn't charge foreign currency conversion fees. These fees are usually between 3% and 5% of the transaction fee.
  • Fraud protection. Most credit cards offer fraud protection guarantees (such as Visa and Mastercard's zero liability policies), which means you won't be liable for any unauthorised transactions made with your card. Terms and conditions usually apply (like reporting the fraudulent transaction within a specific number of days). Visa, Mastercard and American Express cards also have fraud monitoring systems in place, so you'll usually be notified as soon as a suspicious transaction is made.
  • A store card. You could consider using a card that's linked with a specific retailer. For example Coles or the Kogan Money Credit Card will all give you points or rewards at their respective stores.
  • Low or 0% interest fees. If you're planning to make some big-ticket purchases online or think you'll struggle to repay your balance in full each month, you could consider a card that charges a low ongoing interest rate or a promotional 0% on purchases.
  • A rewards card. If you shop online and always pay your credit card balance in full, you could earn points as you spend with a rewards credit card.
To make sure you get accurate and helpful information, this guide has been edited by Joelle Grubb as part of our fact-checking process.
Amy Bradney-George's headshot
Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise
Amy has written 565 Finder guides across topics including:
  • Credit cards
  • Frequent flyer
  • Credit score
  • BNPL
  • Money management
  • Sustainability

More guides on Finder

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

One Response

    Default Gravatar
    Aracelymo87July 17, 2018

    Excellent postings Many thanks!

Go to site