PlusOne - Musings of a marketer

Making purchases on the internet has revolutionised the way many people make purchases. Everything from small personal items, like books, to new cars…just about anything can be bought on the internet using a credit card.But there are risks to the consumer. Shop at the wrong sort of site and you can find your credit card details stolen and for someone to go on a spending spree, racking up debts to your credit limit.

You can make claims through your credit card provider, but there is no guarantee this will be successful so it is wiser to take precautions.

Here are our tips for safe shopping on the internet:

• Do your best to make sure the merchant is legitimate. Do they have physical contact details such as street address and phone number (landline)
• On the page where you enter your credit card details, is there a small yellow lock on the bottom status bar on the right hand side? This signifies they are using a secure server and thus reduces the risk of your credit card details being skimmed
• Grab a screen shot of the order page when you enter your credit card details (shift and print screen keys on your keyboard) and paste this into a word document. This shows you made the order and the URL of the order page
• Always print any receipts - evidence of the purchase if goods do not arrive and to make a claim through your credit card provider
• Limit your exposure to losing your money by not using a credit card - see more on this next heading
• Check your credit card statement carefully every statement and query any suspect transactions. Note that some legitimate online merchants have website names that differ from their registered business name that may appear on the credit card statement

The smart choice - debit card and pre-paid cards

One way to further reduce your exposure is to only use a debit card.

Trusted debit cards are available as either branded Visa cards or MasterCard.

A debit card works in the same way as a credit card - you can use it at on-line and off-line stores just like a credit card, except it has its own pool of funds that you have pre-deposited. In this regard it is like a electronic wallet. You put money in then go shopping.

The good part of this is that you have the same freedom to use the debit card as you do a credit card - as far as the merchant is concerned it is one and the same and they process it identically.

The amount of risk that you are exposed to if someone harvests your debit card details is limited to the amount of money that you have deposited. So if you only have $200, then this is all you risk. Going shopping on the net? Put in as much as you think you will need for that shopping excursion and shop away!

These are the general aspects that apply to debit and prepaid cards:

• Online and Off-line Access.
• Low cost or no cost fees.
• Easy to Purchase (POS).
• 24/7 ATM Access to Funds.
• Generally no Credit Check or Bank Account Required
• No Security Deposits
• No Employment Verification
• Keep your Money safe - No more need for Money Orders or walking around with cash in your pocket
• Set up Automatic Bill Payments
• The card holder may only withdraw funds or make purchases up to the balance on the card. You cannot overdraft the account. There are no late fees or interest charges.
• 24 X 7 On-Line Account Access

Debit and prepaid card providers

Here are the to best provider we could find - please note the COUNTRY as this can influence if you will be issued a card based on your place of residence

Australia

United States

Sterling Pre-Paid Mastercard

Technorati tags safe internet shopping | debit cards | credit cards