November 17,2008
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Online Consumers Credit Card Tips, Pt.1 --
– Credit cards.With the Christmas season fast-approaching, heavy spending is expected using credit cards. Much of the shopping will, no doubt, be online. There are unique considerations when buying online and being appraised on dangers and safety precautions can make a significant difference. So here are a few tips to keep in mind. Each type of buying is unique in the dangers and protections associated with it. Credit cards and debit cards carry some similarities but also, some important differences. It is also important to note that this season is also the prime time for identity theft and that scams of all sorts will be prevalent, particularly with credit cards.
The most common problems online are similar to in-person purchases. An intentional purchase executes properly, but the customer becomes dissatisfied with the product. The unique problem buying online though, is that the consumer has to buy a product sight-unseen and from a person or company that is also sight-unseen. Where credit cards are concerned (usually the case, when buying online) there are usually greater protections for the consumer. Debit cards are another story altogether. Many people think credit cards and debit cards act the same way. They do not. Here are some differences:
- Credit Cards:
- Unauthorized Transactions: These can occur from identity theft of a lost or stolen card or from compromised card data: Card number, PIN, CVV2, etc. (The CVV2 number is the 3-digit number on the back of the card near the signature strip. Guard it closely.) The consumer enjoys limited liability here. Federal law only exposes the credit card owner to $50 for this type of charge, provided they notify the issuing bank (the provider of the card).
- Disputing a Charge: When a deal goes sour and you return a product, a consumer has the right to dispute the charge for the product. If the merchant fails to reinstate the credit card, the card issuer will negotiate a credit resolve.