When it comes to online shopping, paying through credit cards is the way to go. However, with case of ID theft and credit card fraud on the rise, many consumers prefer to use other modes of payment. For instance, online shoppers usually prefer to send their payments through a reputable third party online payment service like Pay Pal. Some also prefer to use prepaid debit card rather than a standard credit card to reduce the risk of theft and fraud.
Online Payment System Enhancements
In response to the increasing cases of ID theft and fraud, credit card issuers constantly enhance their services by providing special protection for their customers. Today, most credit cards provide the Zero Liability Fraud Protection, Card Replacement, and Cash Replacement features. These features give cardholders additional protection against thieves who may try to steal their card details and use them to commit unauthorized transactions.
Internet merchants also take the extra step to ensure their customers’ and their own protection as well. By using a secured server with a standard encryption of 128-bit, online sellers can block ID thieves who may try to hack their systems. If you’re going to make an online purchase, make sure that the merchant is using a secured server. A secured website must begin with the URL https:// and you should see a locked icon in the bottom right corner of your browser.
Internet marketers must take the extra time to verify the identity of a customer or a credit cardholder by calling the credit card company. This is especially true for customers who place exceptionally large orders online or those who live from outside the US.
Reminders for Cardholders
As a credit cardholder, you are responsible to ensure your own protection. Before buying online, carefully check the background and reputation of the merchant. It is best to purchase only from online shops that are recognized by the Better Business Bureau as a trusted merchant.
Be vigilant about monitoring your credit card account, especially after making an online purchase. Take advantage of the 24/7 online account access feature to ensure that no unauthorized charges have been made against you. In case there are, call the merchant involved and your credit card issuer right away.
Instead of using your credit card, you may also apply for a prepaid debit card that you can use exclusively for making online purchases. With a prepaid card, you can simply place an exact amount of deposit in your account, enough to make a purchase. This way, you will not need to reveal your credit card information over the internet.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!