Recent headlines in the newspapers have painted a dark portrait of personal details being either stolen, discarded in rubbish bins by banks or cleverly extracted by criminal masterminds, all using the Internet as a means of getting hold of your personal banking details. Credit card transactions on the Internet have never been higher, as the high street sales crash and online sales rocket. So how safe are your details when using a credit card 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 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 before and after you log on to ensure that your security systems are up to date and adequate. If you do not have anti-virus software and a firewall installed, your computer and consequently your credit card details are vulnerable to attack from spyware, which can skim your details by counting the keystrokes of passwords and other sensitive information. If an email asks you to confirm your details here by clicking on a link, there is a very good chance that the email is a scam, as a bank or credit card provider will never ask you to confirm your details either by email or phone. Delete these phishing emails unopened, or you could suddenly find your bank account or credit card funds draining away very quickly. Keep all passwords secure and never use the same password for all your Internet activities. Once that password becomes known your entire system (including your credit card details) become vulnerable.
When using a credit card online, look for two indicators that you are using a secure site. 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 browser frame of your screen. If either of these are missing, the site is not secure and your details are vulnerable. Check the company you are buying from, ensuring that they have a real address and telephone number and not just a cyber-address. By following a few guidelines and being aware that the responsibility for your financial security is down to you, using a credit card online can be both safe and easy to do. - 15224
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 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 before and after you log on to ensure that your security systems are up to date and adequate. If you do not have anti-virus software and a firewall installed, your computer and consequently your credit card details are vulnerable to attack from spyware, which can skim your details by counting the keystrokes of passwords and other sensitive information. If an email asks you to confirm your details here by clicking on a link, there is a very good chance that the email is a scam, as a bank or credit card provider will never ask you to confirm your details either by email or phone. Delete these phishing emails unopened, or you could suddenly find your bank account or credit card funds draining away very quickly. Keep all passwords secure and never use the same password for all your Internet activities. Once that password becomes known your entire system (including your credit card details) become vulnerable.
When using a credit card online, look for two indicators that you are using a secure site. 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 browser frame of your screen. If either of these are missing, the site is not secure and your details are vulnerable. Check the company you are buying from, ensuring that they have a real address and telephone number and not just a cyber-address. By following a few guidelines and being aware that the responsibility for your financial security is down to you, using a credit card online can be both safe and easy to do. - 15224
About the Author:
Henry Jones is a financial writer that likes to bring forward issues and information within the financial market. You can find further information on credit cards online here.
