Online Shopping Credit Cards

Aussies spent a record $69 billion online in 2024, showing us that online spending is one of our favourite ways to shop - but not always the safest. Credit cards are one of the better ways to protect your identity and your purchases when you shop online, as long as you choose the right one. You’ll need to consider features like:

• Security protocols
• Foreign exchange fees
• Purchase protections
• Reward points potential

Since all credit cards are definitely not created equal for online shopping, you’ll need to check some of the finer print to make sure you’re choosing the safest and most cost-effective option.

This walkthrough will help you understand what features to look for, which card is the best one for your online shopping style, and how security works when you pay online with a credit card.

Which perks suit online shoppers?

Did you know 29.2% of Australian’s online transactions in 2023 came from credit cards? We obviously love using them, but that means you need to find a card with features that make shopping cheaper, safer and more rewarding.

Research shows online shoppers prefer specific features on their credit cards. These features include:

• Long interest free days on purchases (44 to 55) so you get a bit of breathing space to pay if off each month without paying interest
• A reasonable ongoing purchase rate, one below 15%
• Extended warranty and purchase security
• No international transaction fees
• Bonus rewards points. This can be an offer when you signup, or bonus partners with online outlets where you will be happy to spend on the card
• Identity theft protection. After a couple of wild years for cybersecurity breaches in Australia, check if your credit card has identity theft protection.

We’ll take a quick look at two important features: foreign exchange fees, and earning rewards. Further down, we’ve gone deep into security and why it’s so important for online shoppers.

Comparing cards for foreign exchange fees

The foreign exchange rate on a credit card can add enormously to the extra cost on a purchase. These fees are the extra charges added by the bank when you buy something in a currency other than Australian dollars. Some cards waive the foreign fee, which is ideal, while others charge up to 3% of the transaction value.

Key takeaway: Check the card’s foreign transaction fee and consider how many overseas purchases you make. You may want to look for a card with a better rate to keep card costs down.

Comparing cards for rewards points

Many credit cards offer points, cashback, or frequent flyer miles for every dollar spent online. You’ll need to check out the earn rate (how many points you get per dollar spent) and whether points are capped, especially if you’re a big shopper. You’ll also need to consider what kind of points you want to earn: frequent flyer points like Velocity or Qantas, or flexible bank points like ANZ or NAB?

Also, some cards earn a higher rate for overseas transactions, and others award more points for shopping with certain retailers. Many reward cards include bonus points for signing up as a new cardholder.

Key takeaway: Comparing reward points takes a little more time, but it’s worth calculating how many points you could earn using different card rates.

Why use a credit card instead of a debit card online?

While debit cards do offer online protection, credit cards often offer stronger protections and extra convenience for online shopping. For example, some credit cards include these features that most debit cards don’t:

• Extended warranty: Some credit cards automatically extend the manufacturer’s warrant by 6 to 12 months when you buy the item with your credit card. This can be useful for electronics and appliances.
• Purchase protection: This typically covers against theft, accidental loss or damage of items bought on the card for a period after purchase, such as 90 days. You’ll need proof of purchase and possibly a police report, but it does help to recoup costs for missing items.
• Price protection/price guarantees: If you find the same item cheaper elsewhere, or it drops in price within a certain period, you may be eligible for a refund.

Credit cards may also offer faster resolution for disputed transactions, such as someone fraudulently using your card. And, since credit card funds technically aren’t your money until you’ve spent it, you’re not gambling with your personal savings as you would when using a debit card. That extra layer of separation from online theft is smart and provides peace of mind.

Credit card security: Biometrics, Passkeys and Click to Pay

Purchasing online carries risks. Hackers and fraudsters are using increasingly smarter technology to steal identities, hack accounts and defraud your card. Now, there are new technologies like biometrics and passkeys that confirm your identity using your own device rather than passwords or SMS. These protections keep your card details safer and make online shopping faster.

In this section, we’ll outline the different types of online security used by credit cards, and what to look for to find these technologies as an inbuilt feature of a credit card.

How biometric authentication and passkeys work

Mastercard, Visa and American Express have implemented technology that improves security. These improvements comply with the new Digital ID Act 2024, which dictates how identity information and biometrics can be safely used, stored and protected. It also means biometrics must be quality checked for “liveness” so photos can’t be faked, as per Australia’s Digital ID Accreditation and Data Standards.

The comprehensive rules around digital purchases are one of the reasons credit cards with strict anti-fraud and anti-theft features are so important for online shopping. We’ll break down each feature here.

Biometrics

Instead of filling in a password or being texted a one-time password (OTP), you can set up biometrics such as fingerprint or face ID, or a device PIN to authenticate an online payment. Using biometrics means there’s no password that can be stolen, phished or intercepted by scammers.

Passkeys

A passkey is like a digital key stored safely on your device. Your device uses the passkey to unlock a cryptographic key that proves to Visa, Mastercard or Amex that it’s you making the purchase. Passkeys mean your card and biometric details are never shared with the merchant.

Click to Pay

Click to Pay is a way to checkout online without typing your card number. Your device sends a random code that represents your card (called a token) to the merchant, so no one ever sees your real card number. Click to Pay requires a passkey, and uses biometrics to confirm your identity. It also uses QMV 3-D Secure, which checks the transaction in real-time and requests additional verification if it suspects fraudulent activity.

Do all checkout systems accept biometrics and passkeys?

No, not all. The technology has been in early-adoption stage but is gradually rolling out globally as the technology infrastructure improves. Chances are, you’ve already been using Face ID or thumbprints on your smartphone, and possibly through your phone payments. Expansion is expected to significantly increase throughout 2026.

A number of factors need to be in place for biometrics and passkeys to be available. Here’s what you’ll need:

• Must be an eligible retailer: major online stores and platforms are more likely to offer it.
• Must have supported checkout: works with Click to Pay, Apple Pay, Google Wallet, or other card payment wallets.
• Must have the right device: not all devices are ready; you need a smartphone, tablet, or computer with fingerprint or face recognition.
• Must have an updated browser/app: modern browsers and apps that support passkeys/WebAuthn.
• Must have a compatible credit card: your credit or debit card must support biometrics or passkeys.

If biometrics or passkeys aren’t available to you for one of those reasons, you’ll be required to enter your card number and follow standard security checks like a one-time password or 3-D Secure code.

3 helpful things to know:

1. All major cards include general fraud protection, so you won’t be liable for unauthorised transactions.
2. Extra or premium security features vary by card type and issuer. For example, Amex cards may carry different levels of purchase protection or tokenised features.
3. Biometrics and passkeys are becoming more common, but aren’t available everywhere just yet.

Comparing Amex, Mastercard and Visa security features

Numberless credit cards are now being released in Australia

The new wave of online security is numberless credit cards, which are being introduced by a small number of credit card issues (AMP Bank released its own in 2025). These cards don’t display the card number, expiry date or CVV on the physical card. Instead, the details are accessed through the bank’s mobile app using biometric authentication such as fingerprint or Face ID.

This is new technology in Australia, but Mastercard has announced it plans to phase out card numbers entirely by 2030. More Aussie banks will start rolling out numberless cards in the next few years.

Popular credit cards for online shopping

American Express Explorer card

This is a premium rewards card with a $395 annual fee, earns Amex Membership Rewards points and includes travel credits, lounge passes and insurance perks. It supports digital wallets like Apple Pay and includes Amex’s fraud monitoring and secure authentication tools, making it solid for online and travel spends, though it does charge a foreign exchange fee on overseas transactions.

ANZ Low Rate - Cashback card

The ANZ Low Rate Cashback card has a low interest rate and a $58 annual fee after the first year. It comes with up to 55 days interest‑free on purchases and a cashback offer for new customers. It includes ANZ Falcon fraud protection for online use, but does have a foreign transaction fee.

American Express Platinum Charge card

The American Express Platinum Charge card is a premium card with premium inclusions. Its annual fee is $1,450 but it comes with a suite of luxury perks including annual travel credits, extensive airport lounge access, high‑end concierge services, and a range of travel and purchase insurances. It could be ideal for frequent travellers and high‑spending online shoppers who want elite benefits and premium protections.

Westpac Lite Mastercard

This card has a low 9.90% p.a. purchase rate and no foreign transaction fees, plus up to 45 days interest‑free on purchases. It does have a $9 monthly fee which is $108 annually. It doesn’t offer formal purchase insurance, but includes fraud protection and works with mobile wallet options for secure online checkout. This makes it a good choice for cost‑conscious international shoppers.

Tips to find the best online shopping deals

A search for online shopping deals will bring up pages and pages of results for both deal listings and online stores. While it’s great to have so much variety, it also takes a lot of time to go through them all.

So what does it take to find the best online shopping deals for exactly what you want? Organisation and focus are key elements of the process.

In fact, a popular Lifehacker article from a few years ago suggests that keeping a list is one of the easiest ways to find the right deals when you shop online. But unlike regular shopping lists, you can create wish lists with whatever online stores you like to shop at – and often these stores will let you know when what you want is on sale.

Not only will organisational tools like wish lists help you find the best online shopping deals, but it will also help you stick to what you want to buy and could save you more money as a result. Other ways to find the best online shopping deals include:

• Comparing prices between a few websites,
• Considering the total cost with shipping
• Subscribing to online store newsletters
• Sending an enquiry to see if a store will price match
• Becoming a member of loyalty programs; and
• Buying everything you need during sales season.

It’s important to consider the terms and conditions of any store you shop at online. The return policy, shipping and other additional charges, and the privacy policy are all particularly important when you shop online so that you avoid any nasty surprises at the virtual checkout or further down the track.

The bottom line is that online shopping has a lot of great deals but there are still times when you could pay more than you want. Staying organised and following the guidelines above will help you get the best deals as often as possible.

FAQs

Q: Will I pay international fees if an online store charges me in Australian Dollars?

A: Yes, many Australian credit cards charge an international transaction fee of approximately 3% if the merchant is based overseas even if the price is shown in Australian Dollars (AUD). To avoid these costs you should choose a card that specifically advertises $0 international transaction fees for online and overseas spending.

Q: How do virtual credit cards improve online shopping security?

A: Virtual credit cards provide a digital-only card number that is different from your physical card details to keep your main account information hidden from merchants. Many Australian banks now allow you to generate these through their mobile apps which helps prevent fraud if an online retailer's database is ever compromised.

Q: Can I get my money back if an online order never arrives?

A: Yes, you can request a chargeback through your credit card provider if a merchant fails to deliver an item and refuses to provide a refund. This process allows the bank to reverse the transaction and return the funds to your account if the merchant cannot prove the item was successfully delivered. Many debit cards include this feature, too.

Q: Does credit card insurance cover online purchases that are stolen after delivery?

A: Yes, most complimentary purchase security insurance policies cover eligible items that are stolen or accidentally damaged within 90 days of the purchase date. You must have paid for the full cost of the item using your eligible credit card and you’ll typically need to provide a police report to successfully claim for theft.

Q: Do I earn reward points on online marketplaces like eBay and Amazon?

A: Yes, you can earn reward points on online purchases as long as they are classified as eligible retail spend by your credit card issue. You can check the card’s PDS to see what constitutes an eligible purchase, and any other important info like points caps or bonus points with specific retailers.

Summing up

Online shopping and credit cards go hand in hand, so it is a good idea to consider the different ways one affects the other.

As MoneySmart has noted, “Whether we are doing the weekly food shop, booking holidays or buying that special gift, more and more of us are turning to the internet to buy goods.”

Paying with a credit card, the organisation says, can give you extra protection, “including the right to a 'charge back' if you fall victim to fraud”. But the benefits you get from shopping online with a credit card still vary from issuer to issuer, so reading about all of the different features available means you will be able to choose the best credit card to use when you shop online.

Keeping up-to-date on internet fraud and online shopping risks, on the other hand, will help keep your credit card details and personal information safe. So whether you shop online all of the time or only rarely click to buy, being aware of the elements outlined above means that you can make more informed decisions to stay safe and reap the rewards of shopping online.