| Online credit card payments " how safe is your money? |
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| Written by Henry Jones | |||
| Tuesday, 27 January 2009 15:06 | |||
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Recent events and reports in the press have shown just how vulnerable your personal details can be. Stolen by Internet thieves, discarded in rubbish bins by banks or scammed by emails encouraging you to confirm your details here, there are plenty of ways that the unwary consumer can be parted easily from their money. Credit card transactions on the Internet have increased rapidly as high street sales crash. So just how safe are your details when using your credit card online? Despite the frightening headlines of identity theft and credit card scams, its actually relatively safe to use your credit card to make purchases online, as long as you exercise a little caution. There are plenty of precautions you can take to protect yourself against unscrupulous businesses or even those businesses that are genuine but may collapse before your transaction has been completed. Even some of the biggest online companies are at risk (the recent collapse of XL Leisure, Britains third largest tour operator is a case in point), so it pays to take steps to avoid getting caught out before you type in your credit card number and hit enter. The first tip is, ironically enough, always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 says that if something does go wrong the credit card company is jointly and severally liable with the retailer. This covers transactions from 100 up to 30,000 and means that if the company does go out of business before you receive your goods, you can claim the money back from your card issuer. A court ruling has determined that this act also applies to purchases from overseas companies, which is particularly useful for online shoppers. However, the regulations may not apply if you have made a purchase through PayPal or other similar payment systems. Debit card transactions do not have the same kind of protection and are more at risk in the event of something going wrong. Check to see if your credit card provider offers an Internet Guarantee. It means that you will be covered in the event of any fraudulent online activities against your card, although the exact terms and conditions can vary between providers and cards. If your card does have Internet Guarantee coverage you will be able to reclaim any monies drawn against your card if it is proven that it has been done fraudulently. Cards that do not offer this service sometimes offer a dispute procedure instead. If you cannot recover the money from the company, a liquidator or other third party, you may be able to claim the money back whilst waiting for a final decision at arbitration. Check your computer itself before (and after) buying online. If you do not have up-to-date anti-virus software and a firewall installed then your computer is vulnerable to spyware, which can lift your details from your computer by counting the keystrokes when installing passwords or sensitive financial information. If an email asks you to confirm your details by clicking on a link, there is a very high probability that it is a phishing email, designed to part the unwary from their details. The first you will know about it is when your bank account or credit card is magically emptied, so never give your details out. Your bank will not ask you to confirm details except by direct contact, so any email (even if it appears to come from your provider) that does ask for this information is a scam. It goes without saying that all passwords should be kept secure, but dont make the common mistake of having the same password for all your Internet functions. Once that password becomes common knowledge, your entire system (including your credit card details) are vulnerable. Look for two indicators when working online to show that a site is secure. The first is the inclusion of the letter s in the URL address (a secure site will start with the prefix https) and the second is a padlock icon in the bottom right hand browser frame on your screen. If either of these indicators are missing, the site is unsecured and so are your details. Finally, check that the company you are buying from actually exists in the real world (with a real address and telephone number) and doesnt just exist in cyberspace. By following these few simple guidelines, you can be sure that your credit card details will remain secure and that there wont be any nasty surprises the next time you receive a statement. About the Author: Henry Jones writes for various popular websites and specialises in financial based writing. You can find further information on credit cards online here. Add this page to your favorite Social Bookmarking websites          
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