Your card is far more likely to be cloned from a physical transaction than an online one. The waiter/barman that you hand the card to has longer access to your card and more chance of spotting the PIN than any employee of an online store.

So far as online banking goes, it's a lot quicker to check your online statement and spot problems next day than wait for the next paper statement to come in. Just make sure that you have a good strong password (non-dictionary, mixture of letters/numbers) on the account, check your computer isn't harbouring a keylogger and only visit the bank page when you key in the address rather than following links in email in case of phishing.

I've shopped online and used online banking for many years without problems. My current fear of being ripped off comes from my recent burglary not the web.