Disturbing images of rubbish bins full of personal banking details, Internet scammers stealing credit card details and identity theft haunt anyone who makes online purchases using a credit card. Online credit card transactions have never been higher, as consumers turn away from the high streets and look to the Internet for bargains. So how safe are your credit card details when shopping online?
Surprisingly enough, safer than you think. Despite the headlines of credit card scams and identity theft, it is actually quite safe to use a credit card to make purchases online as long as you follow a few basic guidelines and exercise a little caution. There are plenty of precautions you can take to protect yourself against the scammers and even genuine companies that go out of business before you receive your goods or services after paying online with a credit card. Even some of the biggest companies are at risk, as clearly shown by the collapse of Britains third largest tour operator, XL Leisure, last year. So before you type your details in and press enter, there are a few steps to take first to protect your details.
Firstly, and probably most surprising, is the advice to always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 states that if something does go wrong with a credit transaction the credit card company is jointly and severally liable with the retailer for the costs. This covers transactions of between 100 and 30,000, so most medium to large transactions are safe. If the company you are buying from goes out of business before you receive your goods, you can claim the money back from your card provider. A recent court ruling has also confirmed that these regulations also cover purchases made from overseas companies " giving online shoppers a little more peace of mind. However, the regulations may not apply if you make a purchase through a PayPal account or other similar payment system. Debit card transactions do not have the same kind of cover either, and are more at risk in the event of a problem.
Check if your credit card offers an Internet guarantee. It means that you will be covered against the cost of fraudulent online activities, although the exact terms and conditions may vary from card to card. Card providers that do not offer Internet guarantees may instead offer a dispute procedure. This means that if you cannot recover your money back from the company, a liquidator (in the case of a company going into administration) or another third party then you may be able to take the case to arbitration and recover your funds that way.
Check if your credit card offers an Internet Guarantee. This means that you will be covered against the cost of any fraudulent online activity or, in some cases, loss due to the company going into receivership before your transaction is completed. The exact terms may vary between the various card providers. Card providers that do not offer an Internet Guarantee may instead provide customers with a dispute procedure and may pay the disputed amount back to your card if you are unable to recover it directly from the company, a liquidator (in the case of a company going into administration or bankruptcy) or other third party.
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.
Surprisingly enough, safer than you think. Despite the headlines of credit card scams and identity theft, it is actually quite safe to use a credit card to make purchases online as long as you follow a few basic guidelines and exercise a little caution. There are plenty of precautions you can take to protect yourself against the scammers and even genuine companies that go out of business before you receive your goods or services after paying online with a credit card. Even some of the biggest companies are at risk, as clearly shown by the collapse of Britains third largest tour operator, XL Leisure, last year. So before you type your details in and press enter, there are a few steps to take first to protect your details.
Firstly, and probably most surprising, is the advice to always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 states that if something does go wrong with a credit transaction the credit card company is jointly and severally liable with the retailer for the costs. This covers transactions of between 100 and 30,000, so most medium to large transactions are safe. If the company you are buying from goes out of business before you receive your goods, you can claim the money back from your card provider. A recent court ruling has also confirmed that these regulations also cover purchases made from overseas companies " giving online shoppers a little more peace of mind. However, the regulations may not apply if you make a purchase through a PayPal account or other similar payment system. Debit card transactions do not have the same kind of cover either, and are more at risk in the event of a problem.
Check if your credit card offers an Internet guarantee. It means that you will be covered against the cost of fraudulent online activities, although the exact terms and conditions may vary from card to card. Card providers that do not offer Internet guarantees may instead offer a dispute procedure. This means that if you cannot recover your money back from the company, a liquidator (in the case of a company going into administration) or another third party then you may be able to take the case to arbitration and recover your funds that way.
Check if your credit card offers an Internet Guarantee. This means that you will be covered against the cost of any fraudulent online activity or, in some cases, loss due to the company going into receivership before your transaction is completed. The exact terms may vary between the various card providers. Card providers that do not offer an Internet Guarantee may instead provide customers with a dispute procedure and may pay the disputed amount back to your card if you are unable to recover it directly from the company, a liquidator (in the case of a company going into administration or bankruptcy) or other third party.
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.
Posts
No comments:
Post a Comment