Using Your Credit Card Online: The Risks and Benefits

Many companies in the past few years have shifted a lot of their focus to selling products online. Buy.com, Overstock.com, and Zappos.com are only a few of the business selling all of their items online. Not only is this convenient for you, it’s also convenient for the company itself.  Online businesses don’t require an investment in retail locations and storefronts and are better suited investing their resources in “virtual” assets that are focused on servicing their customers more effectively.  More and more consumers have gotten comfortable ordering items online and have started to increase their online spending, and in some cases, have even started to shop exclusively online.  The rapid growth of online shopping, however, has attracted a huge number of opportunistic scammers, hackers, and other criminals though.

You may see an item online that you just have to have, so you punch in your credit card number and press the “Buy Now” button, happy that you’ll be getting something in the mail soon. What you may not have known is that the form had been hacked and was now stealing your personal information. This happens all too often, and causes a lot of trouble and many headaches for helpless shoppers. While many card companies feature buyer protection, it can take weeks, or even months to resolve the situation.

Here are a few tips to keep yourself safe while shopping online with a credit card:

Double Check: Always double check the website that you are shopping on. It make look legitimate, but could just be an information-stealing site. If the payment page did not come directly from the website, or is from a small company, find a way to verify that the website is legitimate. It could save you a lot of trouble in the long run.

Watch Out for Suspect Emails: Sometimes you may receive emails that seem to be from companies such as ebay or paypal. These emails could look very legitimate, but don’t be fooled. Most emails like this are phishing scams. If they ask you to verify information such as your name, address, and credit card number, they’re probably trying to steal your information. Instead of entering the information that they say is required, call or send an email to the company in question telling them about the email you received. If it’s legitimate, they’ll tell you. But chances are, it’s someone trying to steal your personal details.

Don’t Go Overboard: Sometimes the draw of buying things online can be very tempting. It’s convenient, and certain websites offer discounts if you shop online, which can easily lure you into going overboard with your spending. You may see one item that you like, and wind up buying three more to match that you originally had no plan to buy. Try to set a limit for yourself. Buy one item and stop there. You’ll save yourself a huge credit card bill, but you’ll still get to enjoy receiving something in the mail.

Watch Out for Freebies: One of the newer trends online are sites that offer links to “freebies”. These freebies ask that you use your credit card to shop online, and then you’ll receive a free item. Sometimes, these freebie sites are there specifically to steal your credit card information. If a website offering “freebies” asks you for your credit card information, skip it and move on. This could save you time, money, and the hassle of dealing with scam artists.

Stick to Trustworthy Websites: If you want to buy online, try sticking to websites you’re familiar with. Pick a select few and only buy from them. This saves you from spreading your credit card information all over the internet. Plus, if you use only sites that you know are safe, you won’t have to worry about being ripped off.
Buying online can be fun and convenient, but be careful when you do it. Your credit card information is very important, and should not be doled out carelessly. Don’t spend frivolously and go overboard with your spending, and always verify that the website you are buying from is legitimate. If you do all of these things, you can enjoy shopping online with peace of mind.

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This entry was posted on Wednesday, August 5th, 2009 at 10:43 pm and is filed under Card Security, Tips & Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.