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Using Credit Cards Online |
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There is an enormous amount of credit card fraud occurring on the internet. In fact, the internet is a great place to commit credit card fraud: a perpetrator doesn't have to fake a signature, show identification, or appear in the flesh. That said, there are simply too many great opportunities to avoid online shopping completely. Further, credit cards often provide better protection than other options for online purchases. Here, we offer a common sense guide for using your credit card online as well as numerous recommendations for safe credit card use in general. Keep Track of Your Receipts and Get a Shredder. The first thing you should know is that while the internet is a great place to use a fraudulently obtained card number it's not necessarily the best place to get a card number. Just think of the places where you use your credit cards: the gas stations, movie theatres, restaurants, and shopping malls. And the majority of the times you use your card, you get a receipt, a piece of paper that potentially lists your card number. Couple that fact with the statements you receive in the mail and you've got a lot of opportunities for your card number to fall into the wrong hands. To limit the opportunities for someone to obtain your card number, keep all of your receipts (don't just crumple them up and toss them into the trash) and get a shredder. Shredders range in price from $15.00 to $200.00 and we recommend that you get one that includes a bin (we bought a $30.00 strip-cut shredder a few years back and it still works great). We also recommend that you shred everything with your personal information on it, including receipts, financial statements, billing statements, credit card offers, even the address labels and the order forms at the center of catalogs. Jealously Guard Your Personal Information. Before you provide your personal information, make sure you know how your information will be used and if it will be shared. If you are providing information over the phone or to a salesperson in a store, don't be afraid to ask why they are requesting information and how it will be used. Know Your Credit Card. Make sure that the credit card you are using covers any and all charges resulting from fraudulent activity. And make sure to read your credit card Agreement including any addendums that are occasionally enclosed with your statements. We recommend highlighting the section of the Agreement detailing your card's fraud protection and keeping it in a safe place. If your card doesn't offer complete protection from fraudulent activity (online or otherwise), get rid of it. Keep a Record of Your Accounts. Find a safe and accessible place to record and store information about your accounts (i.e., phone numbers, names, and account numbers ) so that if you ever lose your wallet or purse you can quickly contact your credit card companies. Update the record each time you receive a new card or a new number. We recommend setting up a filing system, with folders for each credit card, to store your recent statements, credit card Agreements, notes, and any correspondence. If you ever lose a card, report it immediately and get a new number issued. Review Your Monthly Statement. Set time aside each month to review your credit card statements. If you come across a charge that you don't recognize, call your credit card company immediately (they may advise you to contact the merchant that is billing you and can hopefully provide you with a phone number for the company if one is not listed on your statement). If you identify a charge that is fraudulent, have your card company issue you a new card number (you'll need to alert any companies that bill your card on a regular basis), dispute the charge with your card company if you are unable to contact the merchant billing you or if the merchant will not refund your money immediately (this is a formal process your card company can help you with), and file a report with local police department (in the past, the credit card company was seen as the victim, not the cardholder, but there are now numerous identity theft laws on the books designed to protect us little guys). If you live in the United States, in cases of fraud, it's also a good idea to get copies of your credit reports from the three major credit reporting agencies: Equifax, Experian, and TransUnion (you might wait a month or two before getting your reports to make sure that any fraudulent activity you haven't discovered has time to appear). (Innovis is a newer credit bureau from which you can obtain yet another report.) Review Your Credit Reports Annually. A recent Federal Trade Commission ruling requires the three credit reporting agencies (i.e., Equifax, Experian, and TransUnion) to provide consumers with a free copy of their report every year, upon request. Each and every year you should request copies of your credit reports, review them for inaccuracies and fraudulent activity, and correct any problems that you discover. Use Current Software and Update It Regularly. Make sure that the operating system (e.g., Linux, Mac OS, Windows, etc.) and browser software (e.g., Internet Explorer, Netscape, AOL, Opera, Firefox, Safari, etc.) you use are current and updated with all of the patches and security fixes that are available to you. We also strongly recommend that you install and regularly update anti-virus software (see our Anti-Virus Software page), a firewall (see our Firewall Software page), and spyware detection and removal software (see our Adware and Spyware page). Shop Reputable Merchants and Only Use Your Card on
Secure Pages. When you do use your credit card online, make sure that
the site you are trusting with your information is a reputable one. Read the
Privacy Policy of the site before entering any personal information to
determine how your information might be used or shared. Also be sure to use
only secure pages to enter credit card information. The URL (or web address) of secure pages
will begin with https:// (rather than the
http:// prefix) and the status bar of the secure page will often display a padlock
icon (e.g.,
Use a Low-Limit Card for Your Online Transactions. If you err on the extremely cautious, slightly paranoid side of the spectrum, you might elect to use a credit card with a very low limit for all of your online transactions. Thus, if your card number is ever compromised, the damage will be limited (i.e., the time you'll need to spend addressing the fraud will be limited). Knowledge Is Power. We've provided you with information and advice based on our own experience and research. We recommend that you continue your research and stay informed. Perform your own searches or check out some of the links below for more information: Better
Business Bureau If a link on this page needs to corrected or updated, or if you know of a valuable resource that we should add, please let us know. |
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