
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
In the early days of Internet shopping people would use either credit cards or the EFTPOS system. Although you can still in come cases use EFTPOS to make online purchases, very few companies accept this form of payment.
One of the big reasons vendors do not like this system is because it can only actually be used by Australians. Therefore any companies abroad would have to jump through many hoops in order to accept this kind of payment method.
Something that also hindered the use of the EFTPOS system, was that many websites use special shopping cart software in order to accept online transactions, and most of the software available was not compatible with the system, meaning many vendors stopped using it.
Special offer: $100 cash bonus for new HSBC customers.
Earn 2% cashback on tap and pay purchases (T&C's apply).
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
Credit cards, and debit cards are the main forms of online payment methods. Although in the early days the credit card was the most commonly used form of payment, it would now seem that debit cards are rising in popularity.
One of the main reasons is because using a debit card for online transactions can potentially be a much cheaper way of making purchases.
Like anything that you spend on your credit card, your purchases will be subject to an interest charge if your balance is not fully repaid at the end of your interest free period. In a very short space of time your balance can increase, and reach a level where you will not be able to pay your full balance in time, and so will begin amassing interest.
This means anything you paid for using your credit card could start going up in cost to you!
Learn more about credit cards.
The beauty of the debit card is that it is linked to your bank account and you are only ever able to spend what is available to you in your account.
Unless you have an agreed overdraft with your lender, any purchase you attempt to make with your debit card will be refused if there is not sufficient funds available, and an alternative form of payment will be asked for.
This makes it much easier to stay in control of your spending.
Credit giants Visa and Mastercard are both in charge of processing both credit and debit card transactions, so whichever you use should have the same security benefits as the other.
One thing is for certain, when compared to the EFTPOS system, and credit cards, the debit card is becoming the most common way to pay for your online transactions.
Pay no interest on your credit card debt and clear it faster with a 0% balance transfer credit card. Compare and apply here.
Find out what you need to know before starting an accounting business.
What you need to know to turn your passion for the water into profit by starting a swimming lessons company.
SPONSORED: In a time of financial volatility, here are the key ways to find a credit card that offers you bang for your buck.
How to cut debt and make your credit card work for you.
The online retailer is expected to raise $40 million as it launches onto the ASX. Here's what you need to know.
Everything you need to know about Australia's biggest IPO of 2020.
This card gives you a way to support a program that matches rescue dogs with veterans in need and enjoy a low interest rate on all your spending.
What you'll need to know before you submit your online divorce application.
An everyday transaction account with no account keeping fees and access to Apple Pay, Google Pay and Samsung Pay.