Tips and Information for Safe online Paying
Why is paying by credit card safer than paying by check, cash, or debit card?
If you pay by credit or charge card online, your transaction will be protected by the Fair Credit Billing Act.
Under this law, you have the right to dispute charges under certain circumstances and temporarily withhold payment while the creditor is investigating them.
In the event of unauthorized use of your credit or charge card, you generally would be held liable only for the first $50 in charges.
Some companies offer an online shopping guarantee that ensures you will not be held responsible for any unauthorized charges made online,
and some cards may provide additional warranty, return and/or purchase protection benefits.
Can paying by credit card help in a dispute?
You may be able to dispute the seller's charges if the goods don't arrive or if you aren't satisfied with them and return them.
However, under the federal Fair Credit Billing Act, you can only effectively dispute charges billed to your credit card (but that you have not yet paid)
if ALL of the following are true:
- You have made a good faith attempt to resolve the dispute with the seller; AND
- The dispute involves the amount of $50 or more; AND
- The dispute arose within the state of your credit card billing address, or within 100 miles of your address; AND
- The seller of the goods (for example, a department store) has not issued the credit card that you used to pay.
If the seller of the goods has issued the credit card you used to pay, as when you use a department store credit card,
you may be able to dispute the seller's charges as long as you have first made a good faith attempt to resolve the dispute.
The $50, 100-mile requirements do not apply where the seller and card issuer are the same company.
Be aware that if you buy goods or services from a seller through a web site, there may be some legal uncertainty about where a dispute arose.
What are other reasons to pay by credit card?
You may save money by using a credit card if you pay it off in full when the bill arrives.
Payments made by credit card allow you to keep the payment amount in your bank account, earning interest, until your credit card bill for those payments comes due.
In addition, some credit card issuers grant you extended warranties or other advantages for purchases made with the card.
Phone-In Option
Would you rather give your credit card information over the phone?
Some web merchants allow you to order online and give your credit card information over the phone.
If you're more comfortable with this option, make a note of the phone number, company, the date and time of your call,
and the name of the person who recorded your credit card number.
How can you protect against unauthorized use of your credit card account number?
You should only give your password and credit card number in a secure connection on a web site, not in ordinary e-mail.
Carefully and promptly check your credit card statements when they arrive.
If you identify any irregularities, you should immediately bring these to the attention of the issuer of the credit card by telephone and in writing.
Do you need a separate credit card?
Consider dedicating a single credit card for online purchases. It will be easier for you to review your records.
Also, should the security of this number be compromised, you'll still be able to use your other credit cards.
Credit Card and Identity Theft Prevention Tips
Here are some tips to safeguard your name and your credit:
- Sign your credit and charge cards as soon as they arrive.
- Keep a record of your account numbers, their expiration dates and the phone number and address of each credit card company in a secure place.
- If your credit card is lost or stolen, immediately call the issuer(s). Many companies have toll-free numbers and 24 hour service to deal with such emergencies.
- Save receipts to compare with billing statements. After you make the comparison, shred receipts before throwing them away.
- Review your credit report regularly for accuracy.
- Be wary of telephone or on-line solicitations that seek personal information. This is particularly true for solicitations that offer prizes or awards.
- Use only secure online Web sites when communicating with credit card issuers or other financial institutions electronically.
Note: A secure webpage will display the icon of a locked golden padlock along the bottom of the browser window (by clicking on this small icon,
the certificate can also be seen) and the web address starts with "https" (not "http").
- Never e-mail your personal information to anyone.
- Update anti-virus systems, spyware blockers and firewalls at least once a week as a safety measure.
- Create smarter passwords that are easy to remember, but difficult for "outsiders" to guess.
Mix letters and numbers, avoid using birthdays and Social Security numbers. Change passwords regularly.
- Notify your credit card company immediately if you suspect that you have become the victim of "phishing" or another form of identity theft.
Do other online payment options offer as much protection as a credit card?
When it comes to other types of payment options such as debit cards, money orders, cashier's checks, certified checks, teller's checks,
and cash on delivery (C.O.D.), you'll find the level of protection isn't as high as with credit cards.
If paying by credit card is not an option, request that the goods be sent C.O.D. and make payment by check or money order, which is easier to trace than cash.
BBBOnLine's Safe Shopping Site
- http://www.bbbonline.org/consumer/
Use The U.S. Better Business Bureau's (BBB) safe shopping site to locate companies that are members of their local Better Business Bureau, pledge
to meet the BBBOnLine Reliability standards for ethical online business practices and have agreed to resolve complaints using the BBB's dispute
resolution program or a similar program. Companies must live up to these promises or lose the right to remain in the program.
ePublicEye.com
- http://www.thepubliceye.com/
ePublicEye.com is an independent third party that allows consumers to rate e-businesses for reliability, privacy and customer satisfaction, using a
proprietary monitoring system called eConsumer Intelligence. The heart of the system is an interactive "seal and monitoring" feature that uses
customer feedback to let consumers identify companies that are reliable and committed to customer satisfaction.
Federal Trade Commission (FTC) - Consumer Information
- http://www.ftc.gov/ftc/consumer.htm
The Federal Trade Commission (FTC) works to ensure that the US markets are vigorous, efficient and free of restrictions that harm consumers.
To ensure the smooth operation of our free market system, the FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices.
The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that restrict competition and harm consumers.
Whether combating telemarketing fraud, Internet scams or price-fixing schemes, the FTC's primary mission is to protect consumers.
Internet Fraud Complaint Center (IFCC)
- http://www.ifccfbi.gov/
The Internet Fraud Complaint Center (IFCC) is a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C).
IFCC's mission is to address fraud committed over the Internet.
For victims of Internet fraud, IFCC provides a convenient and easy-to-use reporting mechanism that alerts authorities of a suspected criminal or civil violation.
National Foundation for Consumer Credit (NFCC)
- http://www.nfcc.org/
The National Foundation for Credit Counseling (NFCC), Inc., through its Member agencies, sets the national standard for quality credit counseling,
debt reduction services and education for financial wellness. NFCC is the nation's largest and longest serving national nonprofit credit counseling network.
With more than 1,000 community-based agency offices across the country, NFCC Members help over 1.5 million households annually.
NFCC Members, often known as Consumer Credit Counseling Service (CCCS) or other names, can be identified by the NFCC Member seal.
Myvesta.org
- http://www.myvesta.org/
Myvesta.org is the nation's first nonprofit Internet-based debt counseling service. It assists families and individuals with debt, credit, money and financial problems.
National Fraud Information Center (NFIC)/ Internet Fraud Watch (IFW)
- http://www.fraud.org/
The NFIC/IFW is operated by the National Consumers League, America's oldest nonprofit consumer organization.
NFIC/IFW's mission is to give consumers the information they need to avoid becoming victims of telemarketing and Internet fraud and to help them get their
complaints to law enforcement agencies quickly and easily.
SafeShopping.org
- http://www.safeshopping.org/
SafeShopping.org is a comprehensive guide to safe shopping online, compiled by the American Bar Association. Lots of great information about security, privacy,
payment options, consumer rights and more, as well as useful information on how to complain if you're not satisfied with your transactions.