Online Shopping And The Credit Card

by Lee MacRae

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With more and more people world-wide turning to online shopping, there is a very important question they need to find an answer for. Is there a safe method to shopping online and be as safe as possible in your transactions? Which is the safest method: an online pay service? Checks, cash, credit or debit cards?

Being a worldwide marketplace that's available 24 hours a day, the Internet makes it easy to locate what you want, and shop around for the best price. And most experts agree that,  without question, by far the best way to buy online is using your trusty credit card. In the event that something goes wrong you are protected in the same basic way as when you use it at your local store. While shopping online you have protection based on consumers laws in your country. Almost all major credit cards have zero liability policies on unauthorized transactions meaning that you will not be held fully liable for unauthorized purchases. And credit card companies will work close with you in helping to resolve any disputes with your online stores.

When you start to shop online, make sure you understand the policies of your credit card company. You may even have to ask them for clarification because quite often these liability policies are not even a part of your policy agreement. They are often similar to "verbal policies" that they will discuss if you ask them. Your credit card agreement with the financial institution that issued your credit card can ensure that your liability for an unauthorised charge is limited. Be certain to check the terms and conditions of your financial institution's credit card policy, and your person responsibilities.

Under US law, for example, you are protected under the federal Fair Credit Billing Act. The law says you can legally dispute charges made by others with your credit card, letting you hold payment back during a creditor investigation. Once a determination has been made that your credit was used without authorization, the first $50 is the limit of your liability. And most major credit card companies will waive even that charge, although they are not required to do so.

In the United Kingdom, Section 75 of the Consumer Credit Act 1974 shows you are 100% protected against credit card fraud. Depending on the credit card and your lack of negligence [such as by revealing you PIN number] the law says you are not liable for the fraudulent use of your card. But, keep in mind that if your credit card was misused or fraud is perpetrated by a person who uses it with your permission and who is generally allowed to draw on the account, you can be held responsible for it all! Online or offline, make sure you protect yourself.

There is something else very important to consider. Make sure your credit card is a true credit card and not a debit card, a check card, or an ATM card. Debit and ATM cards are not protected by federal law in the way credit cards are. And e-commerce shopping by check leaves you vulnerable to bank fraud. And sending a cashier's check or money order doesn't give you any protection if you have problems with the purchase.

Shopping online and using a credit card makes it very safe.

And one more tip.

We recommend that you obtain one credit card that you use only for online payments to make it easier to detect wrongful credit charges. That way you can keep a close eye on your online charges much easier than wading through all the transactions listed on your statement,.

And make sure you understand the policy on YOUR card and the consumer laws and consumer protection in your area. Shop online properly and you will come away with a number of bargains along with peace of mind.

Try our online shopping mall today!