Buy Now, Pay Later? Tips for Smart Shopping Online

Online shopping has become easier than ever, and for many people, it's a regular habit. Up to 34% of shoppers buy something online at least a week, and it's not hard to see why. With a few clicks or taps, it's possible to have just about anything delivered to your doorstep, usually within a few days!

However, online shopping isn't without some risks. To help you protect yourself and your hard-earned money, check out these tips for safer online shopping:

#1: Only Shop from Trusted Website​s

First and foremost, make sure you're using trusted, reputable websites for online shopping. Clicking links to unfamiliar websites from emails, social media ads or text messages is never a good idea.

Instead, stick to reputable retailers and double-check the URL in the address bar to ensure you're on the right website. Before shopping from a new website, do a little research and read reviews to make sure the retailer is trustworthy.

#2: Pause Before Paying Online

Before you enter your card information online, pause to check all the details and ensure you're making a secure payment decision: 

• Look for a lock icon and “https" in the website's URL. This indicates that the website is secure and your payment information will be encrypted.
• Use a credit card instead of a debit card when shopping online. Credit cards offer greater fraud protection, which can make it faster and easier to get your money back if your card information is compromised.
• ​Avoid saving your card details on a website or app, which may put your information at risk if the website experiences a data breach or your account is hacked. Instead, enter your card information manually each time, or even better, use a mobile wallet, which encrypts your card details for added security.

#3: Monitor Your Transactions

Whether you shop online or in-store, it's important to keep a close eye on your card statements to spot any unauthorized charges or suspicious activity. The sooner you catch potential fraud, the easier it will be to resolve any issues.

Not to mention, reviewing your transactions regularly can help you track your spending habits and get ahead of unwanted credit card debt. With WPCU's Mobile and Online Banking, you can even set up alerts to get notified about balances and transactions, making it easy to stay on top of your spending.

Buy Now, Pay Later Trend: Use with Care!

Buy Now, Pay Later (BNPL) services are becoming popular payment options at online retailers. These services (such as Klarna or Afterpay) allow shoppers to break up payments into smaller amounts to be repaid over time.

While BNPL services can be convenient, we have some tips to keep in mind before clicking this option at checkout:

• Know What You're Signing Up For: Make sure you understand the terms and conditions before using a Buy Now, Pay Later service, including any fees and interest rates to expect. For example, some BNPL programs may claim to be “interest-free" but hit you with high fees if you miss a payment.
• Stick to Your Budge​t: Just because you can split up a payment, it doesn't mean you should. Small purchases can sneak up on you, and keeping up with multiple due dates can get complicated quickly. To avoid getting in over your head, make sure you can fit the BNPL payments into your budget.
• Consider Other Options: Unlike traditional credit cards, Buy Now, Pay Later services aren't held to regulatory standards that protect consumers from predatory interest rates, confusing terms and high fees. If you're making a large purchase, a credit card​ that offers fraud protection and even cash-back rewards may be a better option.

Ready for More Money Management Tips?

Check out Wright-Patt Credit Union®'s online Education Center for more helpful tips, tools and resources to use at every step of your Financial Flexibility and Freedom® journey.​