November 17,2008
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Online Consumers Credit Card Tips, Pt.3 --
– Safe online methods.For greater debit and credit card protection online, there are some other options. Instead of linking your debit and credit cards and all of its secure information to an unknown merchant located somewhere else in the world, consumers can opt to register with one of several services that will safeguard their accounts. Then, all online charges from those debit and credit cards will be handled by a single and reputable ‘go-between' administrator. Note, however, that there are usually ‘handling charges' associated with these higher forms of protection.
These more secure forms of payment are strongly recommended when using debit cards because of the better protection they offer but work just fine with credit cards, as well. One thing to remember about credit cards is that they should always be paid in full every month, to avoid interest charges. Credit cards are great for making purchases where physically going to the merchant's place is not the best option, but not good at all for running up debt. Interest rates are routinely being raised by most major issuing banks anymore because of unstable conditions in the industry. So here are some more-secure alternatives for making electronic purchases online:
- PayPal:
With PayPal, consumers still enjoy all of the protections that credit cards by themselves offer. The additional protection comes from having all the card's secure information being registered in one central location with a trusted agency protecting that information. With debit cards, the protection can be much greater than purchasing directly with the card. PayPal do charge a fee for their service, however. - Google Checkout:
Google Checkout is very similar to PayPal and offers another alternative for higher debit and credit card security. It's very convenient because of it's association with the top-of-the-line search engine that everybody loves. - Bill Me Later:
Again, the protections offered by "Bill Me Later" are much the same as "PayPal" and "Google Checkout". This service has additional benefits and options. For one thing, the consumer is given a full 60 days from the time of discovery to correct a billing error. Notification to Bill Me Later must be made in writing. Like with the other services, the consumer is not charged while a dispute is being investigated and resolved. However, interest fees are still tallied during that time. If the final resolve does not side with the consumer, these interest fees will be added to the amount owed. - Gift cards:
These have the least protection of all. If the issuing merchant should file bankruptcy (like Circuit City, etc.) the cards may not be redeemable anywhere.
- PayPal: