Additionally, paying by e-check online can be a good way to have your bank account number, routing number and even PIN stolen by a third party hacker. Using credit cards for online purchases does the following, in the event your card should be fraudulently used:

• Limits your liability to $50
• Allows you to challenge purchases.
• Protects in the case of damaged merchandise.

These are all things that can help you when you use a credit card online. Not all debit cards offer this help, and an e-check just doesn't cut it.

Precautions you should take when using credit cards online

Even though credit cards are safer for use when making an online purchase, it is still a good idea to take measures to protect your personal information while you are online. Here are some things you can do to reduce the likelihood that your information will be stolen while you are shopping online:   

    Get Internet security software. Internet browsers provide a certain level of security, it is true. However, another layer never hurts.  You can actually buy systems designed to firewall third parties and protect you from spyware, malware and adware. All of these types of programs track your online usage, and some of them can do damage to your computer, or are designed to steal your passwords and usernames, not to mention you account numbers, as you type them in. Internet security software -- that you keep updated -- can prevent these problems and protect your privacy and personal information.

    Check the address bar. Make sure that you are on a secure site before you enter in any personal information. You can look in the address bar to check this out. A regular site's address starts with "http." If you are on a secure site, the address will start with "https." That "s" indicates that you are on a secure site. You can also check to make sure that the site has a security ticket from a respected and legitimate Internet security company.

    Watch out for phishing scams. Many people have their bank accounts or credit card accounts attached to their accounts at online vendors and retailers. Phishing scams aim to get these usernames and passwords and then use your linked account to get to your bank or credit card account. These scammers send you an email that looks official, telling you to follow a link and login, as though there is a problem or irregularity with your account. You click on the link and enter your information. An error page pops up, but the scammer has what he or she needs. Avoid clicking on links in emails to go to your retail accounts. Instead, log on from the main Web page.

    Log out and close the browser window when you are done. When you have finished with your session, make sure that you log out completely. Then, empty your browser's cache. The cache is a record of the pages you visited. A third party could access this and go to an order page. Finally, close the window completely when you are done. This will ensure that someone isn't following your tracks.

Online credit card numbers

One of the latest developments in online shopping is that of the temporary credit card numbers. These are online credit card numbers that some card issuers offer to let you use -- free of charge as an account holder -- specifically for online purchases. These numbers only work once, and then they do not work again. So if someone tries to steal your credit card number, all they get is something that is useless to them. Additionally, some third party payment companies, like PayPal, will also issue you a temporary credit card number designed for online shopping. This can be a great tool to further help you protect your identity and your finances while you are online.

Another good point is that you can actually use these third party payment services. PayPal is accepted at a growing number of online retailers, and Google CheckOut is becoming popular. Amazon.com even has a third party payment service. The advantage to these is that you only give out your personal payment information to one Web site, and it facilitates your payments to retailers and vendors.
There is no reason that you have to leave your information out there for just anyone. Practice caution when using a credit card online.