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How to use a credit card to shop online

Tips every online shopper should know to keep their finances safe when paying with plastic.

Credit cards are a convenient, secure and popular payment option when you’re shopping online. As well as being widely accepted, most websites have a similar process when you want to pay with your credit card. So, let’s take a look at how it works.

Compare credit cards for online shopping

Name Product Welcome Offer Rewards Purchase Interest Rate Annual Fee Min. Credit Score Description
HSBC +Rewards™ Mastercard®
30,000 Points
2x points per $1 spent
$0 annual fee for the first year ($25 thereafter)
Min. recommended credit score: 630
Get 30,000 Points (up to $150 in value) when you spend $2,000 in the first 6 months. Plus, get the 1st year annual fee waived for the primary cardholder ($25 value). Apply by January 31, 2022.
BMO CashBack Mastercard
5% cash back
Up to 3% cash back
Min. recommended credit score: 660
Get 5% cash back on all eligible purchases in the first three months of card membership (up to max. spend of $2,000). Plus, get a rate of 1.99% on balance transfers with a 1% balance transfer fee for nine months.
Tangerine World Mastercard
15% cash back
Up to 2% cash back
Min. recommended credit score: 680
Earn an extra 15% cash back (up to $150) on up to $1,000 of everyday purchases in the first 2 months Until November 30, 2021. Plus, get a 1.95% interest rate on balance transfers for the first 6 months (valid within the first 30 days of account opening, 1% transfer fee applies).
BMO Preferred Rate Mastercard
3.99% rate on balance transfers for 9 months
Min. recommended credit score: 660
Get a rate of 3.99% on balance transfers for 9 months with a 1% transfer fee. Plus, get the $20 annual fee waived in the first year.
Neo Financial Credit Card
Average 4% cash back
19.99% - 24.99%
Min. recommended credit score: 600
Earn an average cash back of 4% at thousands of local and national Neo partners including most major gas and grocery stores, restaurants, gyms, coffee shops and more. Earn a guaranteed 1% cash back on all spend at non-partners.
American Express Cobalt Card
50,000 points
Up to 5x points per $1 spent
Min. recommended credit score: 700
Earn up to 50,000 Membership Rewards points in your first year. Earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in net purchases on your card (up to 30,000 points). Plus, earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership.
Brim Mastercard
Up to $200 worth of bonuses
1 point per $1 spent
Min. recommended credit score: 700
Earn up to $200 worth of bonus points when you shop with Brim retailers for the first time through the Brim mobile app.
Tangerine Money-Back Credit Card
15% cash back
Up to 2% cash back
Min. recommended credit score: 680
Earn an extra 15% cash back (up to $150) on up to $1,000 of everyday purchases in the first 2 months Until November 30, 2021. Plus, get a 1.95% interest rate on balance transfers for the first 6 months (valid within the first 30 days of account opening, 1% transfer fee applies).
SimplyCash Card from American Express
4% cash back
Up to 1.25% cash back
Min. recommended credit score: 700
Earn 4% cash back on purchases (up to $200 cash back) for the first 6 months of Cardmembership.
American Express Green Card
10,000 points
1 point per $1 spent
Min. recommended credit score: 700
Earn a Welcome Bonus of 10,000 Membership Rewards points when you charge $1,000 in purchases to your card in the first 3 months as a new Cardmember.

Compare up to 4 providers

How to pay online with a credit card

  1. Check the website is secure. Before you submit your credit card details, make sure you’re shopping on a safe website. Two security signs to look for: Check that the website URL starts with the letters “https:” (the “s” indicates that it’s secure) and has an image of a small padlock, usually in the top left-hand corner.
  2. Select your item/s. You can add items to your basket as you shop.
  3. Go to the “checkout”. When you’re finished shopping and you’re ready to pay, look for the bag or shopping cart icon which is often in the top right-hand corner of the web page. This is the checkout page where you’ll provide all your billing details.
  4. Enter your details. Enter your name, address, phone number and email address. Some businesses ask you to create an account when you complete a purchase. Usually you can do this automatically when you make your first purchase by entering a username and password when prompted. You must enter information in all spaces marked with an Asterisk. Not all online merchants require you to create an account, but it can be useful to do this in order to access your order at any time.
  5. Choose ‘credit card’ as your payment method. You will be prompted to choose how you want to pay. Other options could include debit card, PayPal and bank transfers. You may also be required to select whether you have a Visa, Mastercard or American Express credit card.
  6. Provide your credit card details. Enter the name on the front of the card, the 16-digit card number, the expiry date and the three-digit security code (CVV number) found on the back of the card.
  7. Confirm the payment. Press the “confirm” button to submit your payment. Remember not to hit the button more than once while you’re waiting for the payment confirmation page to load, otherwise you may end up getting charged twice.
  8. Extra security measures. Verified by Visa, Mastercard SecureCode and American Express’s Safekey are additional layers of security you can register for when using your credit card. If one of these services is active, you’ll likely need to enter a one-time code sent to your cell phone.
  9. Keep a copy of the payment confirmation. Most online stores will email you a receipt that you can save and print. You can also print or screenshot the confirmed payment webpage if you prefer, or access your transaction if you made an account. These details will help you track your order and ensure the correct amount is charged to your card. You’ll also need the proof of purchase to dispute the transaction if you don’t get what you paid for.

credit card on top of laptop keyboard

Credit card security features for online shopping

Credit card companies have a range of security measures to protect your account from fraud when you shop online. We’ve outlined these in detail below.

Fraud-monitoring services

Many credit card companies provide 24-hour fraud-monitoring services. These services and teams monitor activity on your account and contact you if they see something suspicious. If a fraud-monitoring service can’t verify a transaction that’s been made on your account, it will be able to temporarily block your account and investigate further to ensure your credit card is protected against unauthorized transactions.

One-time passwords

You may have already been pre-enrolled in Verified by Visa, Mastercard SecureCode and American Express Safekey. These anti-fraud services make it virtually impossible for fraudsters to use your credit card. You need to enter a one-time SMS or email code each time you use your credit card to shop online. However, these services don’t cover all of your online purchases. An online merchant must have registered with the program for the service to work. However when they’re applicable, these services add an extra layer of security to the online payment process.

Zero liability guarantees

American Express, Mastercard and Visa provide zero liability guarantees to cover you for fraudulent credit card use in-store, over the phone and online. Note that these liability guarantees do not cover cash advance fraud. If you’re the victim of credit card fraud, contact your credit card provider immediately to dispute the transaction.

Other factors to consider

When using your credit card to shop online, keep these factors in mind to protect your finances.

  • Saving your card details. You may be asked if you want to save your credit card details for the next time you shop. Internet browsers such as Firefox or Safari may also prompt you to save your details. While this can be a convenient option, it also means your card information will be stored by a third-party service and could be compromised if that account is ever hacked.
  • Declined payments. If your payment is declined due to insufficient credit, a processing error or another reason, a payment declined or payment error message will appear and the transaction will not be processed. Your items may remain in your cart for a certain amount of time so you can complete the purchase in the future.
  • Website security. Look for the padlock and “https” letters in the website URL. These show the merchant is encrypting your personal information when it charges your credit card.
  • Currency conversion fees. Most credit cards apply a fee of 2-4% of the transaction when you make a purchase from an overseas merchant. This fee may apply even if the transaction is processed using Canadian dollars. If you regularly shop with international retailers online, you may want to consider a card with $0 foreign transaction fees to save money on this cost.

A credit card can get you almost anything you want on the Internet. It also offers security against fraud and unauthorized transactions. With the above facts and tips in mind, you can now make credit card purchases online safely and securely any time you want.

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