How to shop online safely with your credit card
Posted August 27th, 2009
and last modified December 10th, 2009Safe Internet shopping is very much possible with a good credit card that offers you security and peace of mind. These days we can buy just about anything online and not doing so will often leave you paying too much elsewhere. It is a known fact that online shopping is often cheaper than doing it offline and savvy shoppers know this.
Unfortunately, safe Internet shopping is not always possible, and here is why:
The first problem stems when people don’t treat their credit card with caution, meaning they end up sharing it with friends, family members and kids. But short of sharing your card with third parties you can check whether you are dealing with a reputable online supplier:
- Is the website authenticated by Thawte Consulting SSL or VeriSign security seal?
- Are the website owners contact details clearly displayed on the site?
- Is there an ABN or other business details?
- Can you see a street address opposed to just a PO Box behind which just about anyone could hide?
What is a Secure Server?
A secure server is when the company uses a payment processing system using the secure SSL layer. SSL stands for Secure Sockets Layer. You can whether this is used if the site uses HTTPS instead of just HTTP on their payment site.
You can also see a padlock in the bottom right hand side of your Internet browser which is a sign that you are browsing a safe site. Your personal information is protected through a complex security code and you can shop with confidence knowing your details are safe.
But, one caution is worth mentioning here. Unless you know their security certificate is current and up-to-date you could still run the risk of being scammed. The best way to circumnavigate this possibility is by always checking if you pay for your goods on a URL that starts with HTTPS. If it does, then you are good to go.
Keep track of your online purchases:
Another way to do safe Internet shopping is by keeping track of your expenses with the help of a special email folder (you’ll be getting an email confirmation for just about anything you buy online,) in a notebook or in a spreadsheet.
You also want to check your monthly credit card statement for any incorrect or suspicious information.
Use common sense when shopping online:
This really should be a given but unfortunately it isn’t for many card holders. Keep your computer updated with a good anti-virus software, make sure your firewall is switched on (Windows has a good one by default,) use spy-ware protection which usually comes with a good anti-virus program and keep your passwords safe from prying eyes.
Don’t ever click on any emails that tell you to update your account (phishing). Instead, visit the site by opening your web browser and type the main domain URL into it then login. Do not type the URL as stipulated in the email, it’s a clear trap.
Don’t send credit card details by email. If you have to, send them in batches.
Verified secure codes with MasterCard and Visa:
Both credit card providers offer you with additional protection when shopping online. Visa allows you to verify your card by means of a password through your bank. Once you buy something on the Internet, a message will pop up asking you to verify your card by inserting your password after telling you that you are dealing with a legit seller.
MasterCard has a similar system in place, but their security is with the help of a 3-digit secure code. It can be found at the back of your MasterCard. Keep them safe.
See what the Australian banks offer to help you shop safely online:
- Citibank Credit Cards: Citibank uses what they call a Fraudshield to protect their credit card customers. If the bank detects any suspicious transactions, you will be immediately contacted. Fraudshield is used in conjunction with Verified by Visa and MasterCard SecureCode.
- ANZ Credit Cards: ANZ uses the ANZ Falcon security system. Your credit card transactions are tracked and if there is anything suspicious, ANZ will contact you immediately. The ANZ Falcon system is used in conjunction with Verified by Visa and MasterCard SecureCode.
Commonwealth Bank Credit Cards: Secure Sentinel is the Commonwealth Bank’s security system and is also verified by Visa and MasterCard SecureCode to protect their cardholders. - Aussie Credit Cards: Aussie cards are also secured by Secure Sentinel. The banks uses the protection in addition to MasterCard SecureCode.
- St. George Bank Credit Cards: The bank contacts customers on regular occasions to make sure their transactions are correct. St. George also uses the Falcon Fraud system. They further offer verified by Visa and MasterCard SecureCode.
- NAB Credit Cards: The National Australia Bank uses Verified by Visa and MasterCard SecureCode.
Microchip technology:
Microchip technology adds yet another security layer to credit cards and if you are the owner of such a card, then following the above tips and using common sense will allow you to indulge into safe Internet shopping any time you please.
For more information, read our Guide to Credit Card Fraud, Scams and Traps
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