At a Glance
You can buy just about anything online these days. While online shopping and payments are convenient, you put your payment and personal information at risk every time you make an online purchase. When you buy something online you usually provide your name, address, email address, phone number, credit card, or debit card number.
Even though most reputable e-commerce websites are encrypted, helping to protect your personal and financial information, there are threats associated with sharing this info including data breaches and identity theft. This is where using an anonymous payment method comes in handy. Anonymous payment methods protect your financial and personal information, helping to prevent anyone from collecting your info.
In this article, I’ll cover the available alternatives to standard payment methods, discuss why they’re safer, and also discuss their pros and cons. By the end of this article, you should be able to make an informed decision about your anonymous online payment methods.
Safe and Anonymous Online Payment Methods
Cryptocurrency
Cryptocurrencies are virtual currencies. The currency’s security is due to cryptography. Transactions are decentralized as all transactions are verified and records are kept by a decentralized system (standard currencies are controlled by a central authority, such as governments or banks).
Even if you’re unfamiliar with the world of cryptocurrency, you’ll likely have heard of the most famous type of cryptocurrency, Bitcoin. While Bitcoin is considered an anonymous method of payment, this isn’t completely true. Although your Bitcoin address isn’t directly connected to your identity, all transactions can be traced, as they are publicly stored in a blockchain.
However, there are other cryptocurrencies that are more anonymous. One of these more anonymous cryptocurrencies is Monero. Monero transactions are kept private, thanks to features like one-time addresses and ring signatures for obfuscation.
You’ll find that an increasing number of websites and online services accept cryptocurrency in return for their goods and services. Currently, Bitcoin is the most accepted form of cryptocurrency.
One drawback of cryptocurrencies is that their value can fluctuate wildly day-to-day or even hour-to-hour. The cryptocurrency you paid $10 per coin for a decade ago could either be worth thousands of dollars or only be worth a few pennies.
Furthermore, most cryptocurrency exchanges require signing up and providing your personal information.
Pros:
- Semi-anonymous transactions
- Growing in acceptance
- Flexible usage
Cons:
- Can be quite volatile
- Subject to cyberattacks
- Can be regulation issues in some countries
Paysafecard
Paysafecard is a prepaid payment system that allows users to make online purchases without using a bank account or credit/debit card. Paysafecard can be purchased at physical stores, including gas stations, convenience stores, supermarkets, and other retail locations. Upon purchase, you receive a 16-digit PIN, which is then used to make online purchases.
There are advantages to using Paysafecard. These include not being required to enter credit/debit card or bank account information when making an online purchase. Plus, if you purchase a Paysafecard and pay with cash, it will not be tied to your identity.
Unfortunately, you will find that websites and services may still require you to provide additional information during checkout. After all, if you’re buying merchandise, the seller does need to know where to deliver your items.
There are also spending limits of $300 per transaction, which can be a pain if you’re looking to purchase a smartphone, smartwatch, or other expensive item. However, you can combine multiple Paysafecards to pay for large purchases.
Last but not least, Paysafecard isn’t available in all areas of the globe, and purchase sites may be limited even if Paysafecard is available in your area. Plus, not all online merchants accept Paysafecard, so be sure your favorite online seller does accept it before buying a Paysafecard PIN.
Pros:
- Can be purchased with cash for added anonymity
- No need for a credit or debit card
- Purchase limits can help prevent impulsive purchases
Cons:
- Some sites may ask for additional information before processing a purchase
- Less flexibility than other forms of payments
- Lacks refund options
Gift Cards
A gift card is a type of prepaid card that can be used to make online payments anonymously if purchased and used correctly. Gift cards can be physically purchased at almost any department store, convenience store, gas station, or numerous other types of merchants.
If purchased with cash in a physical location, many gift cards can be used online as an anonymous form of payment. However, if you purchase gift cards online you’ll likely be required to enter your personal information, meaning that info may be linked to the gift card.
Also, keep in mind, that if you purchase a gift card intended for use in a single chain of stores, your purchases will be limited to that chain of stores. However, Mastercard, VISA, and AMEX all offer gift cards that can be used at almost any physical or online retailer that accepts credit or debit cards from the issuers.
Gift cards are usually not refillable, meaning they can only be used until the gift balance is depleted or until they expire. Gift cards usually have an expiration date, meaning you lose all of the balance remaining on the card if you do not use it before the expiry date.
Pros:
- Anonymous payments
- Can be purchased with cash
- VISA, Mastercard, and other gift cards can be used almost anywhere
Cons:
- Store gift cards can only be used in a specific store
- Can’t be reloaded
- Most have an expiration date
- Can sometimes only be used for physical purchases
Prepaid Cards
Prepaid cards can offer payment anonymity, particularly when compared to traditional credit and debit cards. Prepaid cards are available from financial institutions, meaning the cards can be used almost anywhere, be it a physical or online merchant.
Unlike traditional gift cards, prepaid cards can often be reloaded multiple times, making them a good alternative to standard credit and debit cards. Prepaid debit cards can usually be purchased and refilled using cash. Many physical and online retailers accept these cards.
Additional anonymity can be had by registering the card with a disposable email address. That means you won’t need to reveal your name, your phone number, or your daily driver email address. You’ll also want to avoid reloading the prepaid card from a bank account that will link the card to your identity.
Pros:
- Buying with cash makes prepaid cards anonymous
- No need to have a bank account
- Can be refilled
Cons:
- Not accepted by certain retailers or for certain purchases
Virtual (Disposable) Credit Cards
Virtual credit cards are digital versions of traditional credit cards. While gift cards and prepaid cards are not linked to a specific credit account, virtual cards are and can be used for online purchases the same as any physical credit card.
A virtual credit card does not exist as a physical card and exists only as a card number, expiration date, and security code. This makes virtual cards an ideal way to make online purchases while not revealing your actual credit card number.
In most cases, each virtual credit card is designed to work only with a particular online merchant. This means you may have a virtual card number for use only with Walmart, another might be for use at Best Buy, and still another will be for Amazon purchases only. This limits the exposure of a single virtual card to one merchant, making it easier to monitor all of the purchases made with the virtual card, which makes it easier to detect fraudulent purchases.
Pros:
- Unique, disposable credit card number
- Create multiple virtual cards on a single credit account
- Makes it easier to monitor purchases with a card
Cons:
- Linked to your credit card
- Can only be used at one online merchant
Semi-Anonymous Payment Methods
Apple Pay
While Apple Pay is not a truly anonymous payment method, it does offer several privacy and security-related benefits.
Apple Pay users enter their credit and debit card information into their iPhone’s Wallet app. This allows charges to be properly applied to the cards that are entered. However, Apple Pay does not store your actual credit card information on your device, nor does it send your card info to a merchant when you make an in-store or online purchase. Instead, a one-time encrypted token is created that represents your credit or debit card without sending your actual card info to the seller. This keeps your real card info private, offering protection against the card number being exposed in a data breach.
You can also gain additional anonymity by using Apple’s Hide My Email to generate random, unique email addresses that automatically forward to your personal email inbox.
Pros:
- Protects your credit card information
- Also protects your payment info for in-store payments
- Uses an encrypted token in place of a credit card number
Cons:
- Not accepted by all online merchants
- Limited to Apple devices
Google Pay
Just like Apple Pay, Google Pay is not an anonymous payment method. However, also like Apple Pay, it uses tokenization to create an encrypted payment token, which is used to complete the transaction. Google Pay also offers other security features including transaction encryption and two-factor authentication (2FA).
Unfortunately, Google Pay requires a Google account and requires you to link a credit or debit card to the account. Google also gains access to your transaction details. When you combine that with the plethora of information Google already has about you, it doesn’t do your privacy or online anonymity any good.
Pros:
- Protects your credit card information online
- Also protects your payment info for in-store payments
- Uses an encrypted token in place of an actual credit card number
Cons:
- Not accepted by all merchants
- Limited to Android devices
Cash App
Cash App is a popular peer-to-peer (P2P) payment system that allows app users to send and receive funds without sharing personal information, credit card numbers, or banking information with other users. However, you do need to provide Cash App with all of the above information. This means that when combined with the visibility of transactions on the platform, it doesn’t provide truly anonymous payments.
Pros:
- Protects your credit card and banking information
- No need to share personal information
Cons:
- Not accepted by online merchants
- Popular scam target
PayPal
PayPal is arguably the largest and best-known payment platform today. While the service does offer a layer of payment privacy, as your credit card information isn’t exposed when paying for a transaction, it does require you to provide personal information, while also requiring you to link a bank account or a credit or debit card to your account.
Please be aware that PayPal tends to enjoy charging fees for many transactions, including payments to other users, receiving payments from other users, fast balance transfers, and more.
Pros:
- Protects your credit card and debit card information
- Accepted by many physical retailers
Cons:
- Not accepted everywhere
- Fees, fees, fees
Venmo
Venmo, which is owned by PayPal, is another P2P mobile payment service that allows app users to send and receive funds without sharing personal information, credit card numbers, or banking information with other users. Users can adjust their Venmo settings to ensure that their transactions are only visible to the sender and recipient or only to themselves.
It should be noted that, just like Cash App, you still have to furnish personal information and bank account or credit card info. Plus, the social nature of the Venmo app makes it ill-designed for anonymous transactions.
Pros:
- Protects your credit card and banking information
- No need to share personal information
Cons:
- Also a social-based app
- Popular scam target
In Closing
As we’ve found, there are several ways to protect your identity and your payment information while making online payments. While many are truly anonymous, these payment methods aren’t as widely accepted as other forms of payment. Meanwhile, other payment methods may be more widely accepted, but they don’t protect your privacy quite as well.
I hope this article allows you to make an informed decision about online payment methods.
Anonymous Online Payment Methods FAQs
Why Should I Use an Anonymous Form of Online Payment?
There are several reasons to use an anonymous online payment method. Using anonymous online payments protects your personal and payment information from being exposed in a data breach. This also protects your personal data from being collected and used for marketing purposes.
Anonymous payment methods also mean your privacy is protected when it comes to tying the purchase of a specific item purchase to your identity.
Can a VPN Help Me Make Anonymous Online Payments?
Yes, a VPN not only encrypts your internet connection, which keeps your online activities, including visits to e-commerce sites, undercover, but it also hides your genuine IP address, which prevents anyone from determining your physical location.
A VPN’s connection encryption comes in especially handy when you’re using a public WiFi hotspot, which is typically unencrypted, leaving your online activities, such as shopping, open to being observed or intercepted. A VPN’s encryption keeps your internet activity undercover, while also protecting against man-in-the-middle attacks, which is when a bad actor intercepts your traffic, redirecting it to a malicious website designed to steal your information.
Make sure that you select a reliable VPN, like my top VPN, NordVPN. Do not opt for a VPN simply because it is free or offers a low price. Many VPNs, particularly free VPNs, do not offer sufficient online privacy and security.
