Purchasing Something Online without a Credit Card: What You Need to Know

• Swap your credit card for your debit card by entering your payment information on the online payment page.
• Use an online payment company such as PayPal or Amazon Payments, which connects a debit card or checking account to online shopping sites.
• Use gift cards to purchase items online from stores like Amazon, Barnes and Noble, and Hallmark.

Using Your Bank Account

Buy with your debit card. Most sites that accept credit cards will also accept debit cards. Debit cards are easy to get because they come with any bank account. It allows you to use your checkbook for easy record-keeping of what you buy. It is also faster than other options. Since credit cards can lead to debt, using a debit card can save you from that problem because it takes the money directly out of your bank account. To buy with a debit card, you enter the card number on the payment page just like you would a credit card. Sometimes, however, you might have to put in your PIN. It can be risky because it gives direct access to your checking account. It could possibly be used for fraud.

Use an online payment company. There are some online companies that act as a payment service for you. With these services, such as PayPal or Amazon Payments, you don't have to give your information directly to the website that you are buying from. You connect a debit card or checking account to your virtual account on the online platform on their site. You can then buy whatever you want and the payment company will take care of it. You use these sites by creating an account. Chose the sign up option from their site. You will need to create a profile. You typically need to pick a username and password and add your email address. You will have to create answers for challenge questions that are used for your security. You then provide them with your address and additional personal information. Then you put in the information of the checking account you want linked to the account. Many online retailers accept these forms of payment, but not all do. Make sure you check whatever store you are buying from.

Purchase with a check. You can still buy from certain online store with checks, but it might be very difficult to use this option. Stores on websites such as EBay and Etsy will likely be more willing to accept this option than a larger retailer. For these methods, you send the check and wait for it to clear the bank. Then, your items will be shipped. The problem with this method is that it takes a lot more time than other methods. The store has to wait for the payment to arrive. This means you have to wait for the items you bought as well. You can also use a money order. These work just like a check. You send them, the store cashes them, and then your items are shipped. You can buy these at many stores and your local post office.

Use your checking account for an electronic fund transfer. Large online retailers such as Amazon accept electronic fund transfers (EFTs). This method works by transferring money from your personal checking account to the store. To set this up, you usually have to add your checking account to your profile. This means you need your account number and bank routing number. You then have to enter the name and the address of the person who is named on the account. You may also be asked to give the drivers license number of the account holder and the state that issued the ID. Most sites will not accept business, corporate, or savings accounts. Just like with a debit card, there is some risk involved because you are giving out your bank account information to a third party. Make sure it is a reputable website or store before you give away your information.

Pay with an electronic wallet. Many companies and businesses have created electronic wallets. Google Wallet is the most popular, but companies such as Starbucks and Apple have also launched them. The electronic wallet is different than the traditional online payment service. They are on your device as an app instead of working through an online site. Digital wallets allow you to add money to them in a variety of ways. You can add with a debit card or checking account. To use, all you have to do is create an account and add money. Then just select the payment type, swipe the screen of your phone, and you have bought the items. You can also use other units of value like loyalty points or mileage anywhere that will accept them. With a digital wallet, you don't have to go through a hectic redeeming process. The app does it all for you. This is an important new development because mobile apps are one of the largest areas of growth in tech, media and other industries. This now includes payment systems.

Using Alternative Methods

Use collect on delivery. Collect on delivery (COD), also known as cash on delivery, allows you to buy something and then pay for it when it arrives. The primary benefit of this option is that no money is spent until you get the items. You can check the product delivered and refuse delivery if necessary. This leaves the responsibility of the item to the seller instead of you. One other benefit is that, depending on the company, you can buy things for much higher than most credit card limits. Cash used to be accepted, but it is rarely accepted now. To pay when your items arrives, you need to pay with a personal check, business check, cashier’s check, or money order. This used to be very common but is not as popular anymore. It is still possible with individual sellers and small retailers. UPS, Fedex, and the USPS still offer this service. It is available within the United States and between the US and Canada. Fedex also does COD in India. COD can have more costs than normal shipping. The extra costs have to be paid by you when the items arrive. This option is great for high-dollar purchases that exceed your credit card limit.

Redeem points or rewards. Some online retailers, such as Amazon, Macy's, and EBay, will allow you to use points for purchases. You can enable this option from these sites from their pay with points pages. You can use points from cards such as the Amazon.com Business Rewards Visa, the American Express Membership Rewards, the Chase Ultimate Rewards, the Discover Cashback Bonus, the Discover Miles, and the Citi Thank You card. The drawback to this method is that the value of points is often very hard to figure out. They will vary from company to company and even from product to product. There is usually a dollar value associated with getting points, such as one point per dollar spent. The value when you spend the points is typically not the same. Each program is different and you should consult the terms and conditions of your program to determine the value of points or rewards. Points can be collected and redeemed in many different ways. You can also get rewards from e-commerce sites such as Amazon or the Ebay Bucks program.

Purchase items with gift cards. Gift cards can be used at many online store such as Amazon, Barnes and Noble, and Hallmark. You can use a gift card to buy any item from the online store, just like you would cash in a real store. You can also add the card balance to your account to be used the next time you buy something. The processes of using gift cards is similar across sites. If you want to use it on a particular purchase, you can enter it on your payment page when you are checking out. There is typically an option to redeem a gift card on your payment screen. You then locate the claim code on the card and enter it into the site. To add the money to your account, go to your account page on the site. Choose to add a gift card to your account from this page. Enter the claim code and then hit submit or apply. For plastic gift cards, you may need to scratch off the coating on the back of the card to see the code. The claim code is different than 16-digit card number. Purchase gift debit cards. Gift debit cards (ie. Visa Gift Card, AMEX Gift Card,etc.) are accepted anywhere debit cards are accepted. You will likely be able to purchase them at a store that sells gift cards. They work like gift cards, however they are accepted anywhere debit cards are accepted, and some can be re-loaded.