Debt Consolidation Credit Counseling In Phoenix

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.

The first tip is, ironically enough, always use a credit card rather than a debit card. Section 75 of the Consumer Credit Act 1974 says that if something does go wrong the credit card company is jointly and severally liable with the retailer. This covers transactions from 100 up to 30,000 and means that if the company does go out of business before you receive your goods, you can claim the money back from your card issuer. A court ruling has determined that this act also applies to purchases from overseas companies, which is particularly useful for online shoppers. However, the regulations may not apply if you have made a purchase through PayPal or other similar payment systems. Debit card transactions do not have the same kind of protection and are more at risk in the event of something going wrong.

Before you log on, check your computer. If you do not have up-to-date anti-virus software and a firewall installed, your computer is vulnerable to attack from spyware, which can skim your details either through a virus or by counting the keystrokes you make as you enter your details. If an email (even one that appears to be from your bank) asks you to confirm your details by clicking on a link, the chances are that it is a phishing email sent to the unwary consumer and designed to part them and their money surprisingly quickly. Your bank or credit card provider will never ask you to provide sensitive details by email or phone, so any email that does ask for this kind of information is a scam.

Check if your credit card offers an Internet Guarantee. This means that you will be covered against the cost of any fraudulent online activity or, in some cases, loss due to the company going into receivership before your transaction is completed. The exact terms may vary between the various card providers. Card providers that do not offer an Internet Guarantee may instead provide customers with a dispute procedure and may pay the disputed amount back to your card if you are unable to recover it directly from the company, a liquidator (in the case of a company going into administration or bankruptcy) or other third party.

When making any credit card transaction online, look for two indicators on your computer that tell you the site is secure. The first is the inclusion of the letter s in the URL address (a secure site will start with the URL address code https) and the second is a small padlock icon in the browser frame of your screen. If either of these are missing it means that the site is unsecured and your details are vulnerable. Finally, check that the company you are buying from has a real-time address and not just a cyber-address. By following these few guidelines and being aware that there are (easily avoidable) risks to online purchasing, your credit card details should remain safe and secure.