Paying online – how safe are your card details?
Recent events and reports in the press have shown just how vulnerable your personal details can be. Stolen by Internet thieves, discarded in rubbish bins by banks or scammed by emails encouraging you to confirm your details here, there are plenty of ways that the unwary consumer can be parted easily from their money. Credit card transactions on the Internet have increased rapidly as high street sales crash. So just how safe are your details when using your credit card online?
Despite the terrifying headlines of identity theft and credit card fraud, its actually quite safe to use your credit card to make purchases online, as long as you follow a few basic rules. There are plenty of precautions you can take to protect yourself and your credit card against the Internet scammers or even genuine businesses that find themselves victims of the current economic downturn and collapse before your transaction is completed. Even some of the biggest companies are at risk, as the dramatic collapse of XL Leisure, Britains third largest tour operator, so clearly demonstrated last year. So it pays to pause for a moment and make a couple of checks before you type in your details and press the ‘enter button.
Ironically enough, the first tip is ” always use a credit card rather than a debit card. The Consumer Credit Act 1974 Section 75 states that if something does go wrong with a transaction the credit card company is jointly and severally liable with the retailer. This covers transactions from 100 up to a maximum of 30,000 and gives consumers some peace of mind. If a company does go out of business before youve received your goods then you can claim the amount back from the card provider. A recent court ruling has also determined that purchases from overseas companies are also covered, which is particularly reassuring for online customers. However, these regulations may not be applicable if you have made your purchase through PayPal or other similar payment systems. Debit card transactions do not have this protection and are at far more risk.
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.
