As debit cards become more popular among consumers, the Federal Trade Commission warns all prepaid cardholders to exercise caution when using these cards for payment, particularly when purchasing from the internet.  How can you avoid being a victim of credit card fraud?  Check out the following safety tips:

Https://. To ensure the security of a web site, make sure that the URL or the website address begins with https://.  You should be able to check this from your browser’s address bar.

Privacy Policy. An online merchant must present its Privacy Policy on its website.  Take the extra time read this important information.  Because every merchant has its own set of policies on protecting their customer’s rights to privacy, you should be clearly aware of how your personal information will be used and what you can expect from the merchant.

Merchant Reputation. It is strongly recommended that you purchase only from trusted merchants online.  Get to know the company’s background and reputation.  Although you can find online stores that offer incredibly low prices, you want to make sure that you are dealing with a legitimate seller who only sells high-quality products.

Seal of Approval. Look for online shops that bear logos or seals of approval from National Business/Merchant organizations like the BBB (Better Business Bureau) and TRUSTe.  Take the extra effort to check the merchant’s record from the BBB.

Fraud Liability Protection. Does your debit card Issuer provide you protection against fraudulent or unauthorized charges made using your account?  Prepaid debit cards by Visa and MasterCard comes with this provision as their standard credit cardholders do.  If you are not sure, review your debit card’s Terms & Conditions before using your card online.

Purchase Protection. What about purchase protection?  For instance, prepaid debit cards with the VISA logo requires online verification before the cardholder can continue with the purchase.  This gives VISA cardholders additional security against fraud.

Check your bill. Review your debit card receipts to make sure that all charges are correct.  If you find errors, call your debit card company immediately.

Check out fees. Some prepaid debit cards carry so many extra charges on every transaction you make, including online purchases.  Before using your debit card to buy from the internet, review the fine print and get to know the possible fees that you may incur.

Check your funds. Make sure that you have sufficient balance in your account to pay for that particular item.  Some debit cards charge overdraft fees and other penalties in case your purchase exceeds your limit.

Do not share your PIN with anyone. You will be required to enter your debit card’s Personal Identification Number (PIN) when making purchases both online and offline.   Never let the cashier or anyone else enter these numbers for you.

Do not use your debit card account for savings. Limit funds in your debit card account and avoid making large deposits.  This way, in case your account gets hacked, it will not be a heartbreaking loss for you and you can always switch to a new account.

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!

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!

Should you transfer to prepaid debit cards? To answer this question, let’s talk about the options that debit cards provide along with the advantages you can enjoy upon using them. But first, let’s briefly discuss what prepaid debit cards are and how they differ from credit cards.

A prepaid debit card looks like a regular credit card. You can carry it with you when shopping at the mall or at groceries and use them as payment. Instead of bringing cash, just bring your prepaid debit card with you and enjoy the convenience. Prepaid debit cards can also be used in restaurants, gas stations, and even at online merchants.

Since they are prepaid, the debit card holder must place enough funds in his/her account before using the card. The purchases will instantly be deducted from the card holder’s debit account so there’s no need to worry about due dates or repayments.

Prepaid Debit Cards vs Checking Accounts

Instead of opening a checking account, having a prepaid debit card offers the same functions that a checking account provides but with less limits. For instance, if you have bad credit, a prepaid debit card is a lot easier to avail than opening a checking account. There’s no need to carry around checks or worry about getting your blank checks stolen. In case your prepaid debit card is stolen, you can simply call your bank right away so that your account can be put on alert.

Using Prepaid Debit Cards for Internet Shopping

Another advantage of prepaid debit cards is they can be used in shopping online even if you don’t have a credit card or a bank savings account. For many shoppers who prefer to shop from the internet, having a prepaid debit card is a great tool because the risk of credit card fraud and identity theft are avoided.

Prepaid Debit Cards vs. Pay Checks

Prepaid debit cards are now used in government offices as well as in private firms as tools for distributing monthly salaries to employees. Prepaid debit cards are easier to use than issuing paychecks. If you have a home based business or a small business, you can use prepaid debit cards in sending your payments to your employees regardless of their location. Now that freelancing is gaining wide popularity among business owners, prepaid debit cards are also enjoying the recognition.

Prepaid Debit Cards vs Credit Cards

Prepaid debit cards do not allow card holders to carry over balances they incur from month to month. With a prepaid debit card, the card holder can only purchase the maximum amount that is available in his/her debit account. Neglecting payment dues and incurring interest rates and penalty fees are also avoided.

This limitation can actually be an advantage especially for those with uncontrolled spending habits. Without the option to carry over balances, a debit card holder is encouraged to use the debit card only for reasonable purchases. If you’ve had trouble with bad credit before, switching to a prepaid card can be a good solution.

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, pre paid credit cards and prepaid cell phone service can save you big money!