Did you know that digital wallets are the most popular payment option in the world? The e-commerce landscape has transformed, and consumers are adapting to it. Whether you’re dedicated to a zero-debt lifestyle, haven’t been able to secure a credit card, or don't want to deal with a plastic card, you can buy things online without a credit card.
From online payment systems like PayPal, Cash App and Apple Pay to debit cards, payment platforms are changing how customers can pay and interact with online stores. Understanding how online payment works and the alternative ways to pay online without a credit card can help consumers understand available options and evolving e-commerce trends. Read on for how to buy things online without a credit card, including the pros and cons of each option.
Top 3 Ways to Pay Online Without A Credit Card
Here are three of the best options for making purchases online without a credit card.
Use a Debit Card
A debit card is arguably old school, but debit cards are a practical solution if your goal is a debt-free lifestyle. A debit card is linked to a checking account or money market account. Like a credit card, it usually has a 16-digit number associated with it. You can enter this number with a three-digit CVV that’s usually found on the back of the card.
Unlike a credit card, a debit card withdraws directly from the bank account it's linked to. Although your bank may offer overdraft protection, you're not taking on debt when you use a debit card. Instead, you're paying directly from your bank balance.
How it Works
When you pay with a debit card, you enter information like a credit card. For many online retailers, there is a single option for credit or debit cards, where you'll enter the cardholder's name, the card number, the CVV and the card expiration date. Then, you hit buy now, and that's it. As long as you have sufficient funds in your bank account, your bank will approve the charge, and the purchase will be completed.
Pros
- Simple to use
- Fast to get for almost anyone
- You can open a checking account for free
- Pay only what you have available to save more
Cons
- You can only pay what you have available
- If you accidentally charge more than the account balance, you'll risk overdraft fees
- Some banks limit the number or amount of daily or monthly transactions
Use a Payment App
Payment apps or digital payment platforms like PayPal and Stripe allow you to link a bank account, debit card or prepaid card to your digital account. Then, you can make payments online to stores that accept these payment methods. Similar to this, peer-to-peer payment apps like Venmo or Cash App allow you to pay at many online stores. These apps are fast and easy to use, and they don't require a credit card.
How it Works
When checking out at an online store, many retailers offer the option to pay via PayPal, Stripe, Venmo, Cash App or another option. When you click that button, you will be taken to a pop-up window or linked page that allows you to log into your account. From there, you can choose how you want to pay and complete the purchase. Find more ideas for mobile payment apps here.
Pros
- Easy to use
- Fast and easy to set up
- You can link a prepaid credit card if you don't have a bank account or debit card
Cons
- These apps may charge extra fees
- Some apps require additional verification or may freeze an account if they suspect unusual activity (like if you're in a new location)
- You'll still need a payment method like a bank account, debit card or prepaid credit card
Use a Digital Wallet
Mobile or digital wallets like Apple Pay and Google Pay are increasingly popular. A digital wallet saves your payment information on your mobile device or computer. You can link the wallet to a debit card or bank account. In addition to allowing you to pay online, the digital wallet automatically fills in information at checkout, making checking out more convenient, fast and secure. The most popular wallets are Apple Pay, Samsung Pay and Google Pay.
How it Works
When you go to checkout on your phone, tablet, or computer, you can choose to pay with the digital wallet. Each has slight differences in functions, but the basic idea is the same. It automatically fills in the required information so you can complete the transaction in a single click.
Pros
- Easy to set up
- Link any credit or debit card, or link your bank account directly
- Check out with a single click
Cons
- Convenient payment system makes it easy to spend more than you planned
- You'll still need to have a bank account or debit card to link to the digital wallet
Other Ideas to Shop Online Without a Credit Card
Buying stuff online without a credit card is easier than you might expect. Additional options for paying online without a credit card include gift cards, store credit or Amazon cash. You can purchase gift cards with cash, debit cards or mobile wallets to shop at most major stores.
Likewise, if you received a store credit, you can use the redemption code or number to shop online. And when you shop on Amazon, you earn cash back that you can use to shop online without a credit card. Ready to get started? Learn more about online banking and online banking apps to make payments easier than ever.
Frequently Asked Questions
How do most people pay online?
Digital wallets are the most popular online payment system globally. People also pay with credit and debit cards, payment apps, bank transfers or buy-now-pay-later options.
How do I make online purchases with my debit card?
You can make online purchases with a debit card, similar to how you’d make an online purchase with a credit card. You’ll select the debit card payment option and enter your name as it appears on the card, the card number, expiration date and CVV in the required fields.
What are the safe online payment services?
Safe online payment services include PayPal or PayPal alternatives like Stripe, Apple Pay, Google Pay, Amazon Pay, Venmo and Cash App.
What websites don't require CVV?
Websites use a CVV to protect the cardholder even if they store other payment information. Sites that don’t require a CVV include Amazon, Target and Walmart.
Can you pay online with cash?
While you can’t use cash to shop online directly, you can use cash to purchase gift cards from many online stores to make purchases. For example, you can use cash to purchase gift cards for Target, Walmart, Amazon, Kohl’s and other major retailers that offer gift cards.
About Alison Plaut
Alison Plaut is a personal finance writer with a sustainable MBA, passionate about helping people learn more about financial basics for wealth building and financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgage, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she is a regular contributor for Benzinga.