New Tips for Shopping Online

Here are some new tips for buying online.

1. Credit Cards the best way to go.

The safest way to shop on the Internet is with a credit card. In the event something goes wrong, you are protected under the federal Fair Credit Billing Act. You have the right to dispute charges on your credit card, and you can withhold payments during a creditor investigation.

When it has been determined that your credit was used without authorization, you are only responsible for the first $50 in charges. You are rarely asked to pay this charge. We recommend that you obtain one credit card that you use only for online payments to make it easier to detect wrongful credit charges.

Paying with a check leaves you vulnerable to bank fraud and sending a cashier's check or money order doesn't give you any protection if you have problems with the purchase.

Make sure your credit card is a true credit card and not a debit card, a check card, or an ATM card. As with checks, a debit card exposes your bank account to thieves. Your checking account could be wiped out in minutes. Further, debit and ATM cards are not protected by federal law to the extent that credit cards are.

2. Never Give Out Your Social Security Number

Providing your Social Security number is not a requirement for placing an order at an e-commerce web site. There is no need for the merchant to ask for it. Giving out your Social Security number could lead to having your identity stolen.

3. Don't give to much information

When placing an order, certain information must be provided to the seller such as your name and address. Sometimes, a seller will try to obtain more information about you. This information could be used to target you for "spam", direct mail or telephone soliciting.

Don't answer any question you feel is not required to process your order. Most web sites will mark which questions need to be answered with an asterisk (*). If a company require information you are don't want to give, leave the site and find a different company to do business with.

4. Keep Your Password Private

Most reputable web sites require the shopper to log-in before placing or viewing an order. The shopper is usually required to provide a username and a password. Never reveal your password to anyone. The best password has at least eight characters and includes numbers and letters.

5. Check the Web Site Address

Don’t click on any link embedded within an email. Instead, open a new page then type in the link’s URL into the address bar and press “Enter”.

Identity thieves send large amounts of emails to Internet users that ask them to update the account information for their banks, credit cards, online payment service, or popular shopping sites. The email may state that your account information has expired, been compromised or lost and that you need to immediately update your information for the site.

Some emails sent as part of “phishing” attacks often contain links to official-looking web pages. Up to five percent of recipients respond to them and becoming victims of identity theft and other crimes.

Remember, legitimate businesses don’t ask for sensitive information via email. Don’t respond to any request for your personal information that comes to you in an email. And never click on any link embedded within an email.

6. Print Copies of Your Orders

After placing an order online, you should receive an invoice that reviews your entire order. It should include the costs of the order, your information, product information, and the confirmation number.

Print out at least one copy of the page(s) showing the company name, address, phone number. Keep it for your records for at least the period covered by the return/warranty policy.

7. Shop in the Unites States

When you buy from a company in the U.S., you are protected by state and federal consumer laws.

8. Know the Shipping Policy

Under the law, a company must ship your order within the time stated in its ad. If no time frame is stated, the merchant must ship the product in 30 days.

Here are key shipping questions to ask:

Are there choices for shipping?

Who pays the shipping cost?

What does the site say about shipping insurance?

What are the shipping and handling fees, and are they reasonable?

Know the site's Cancellation, Return and Complaint Policies

Even under the best of circumstances, shoppers sometimes need to return merchandise. Make sure site has a reasonable cancellation and return policies.

Who pays for shipping?

Is there a restocking charge if you need to cancel or return the order?

Do you get a store credit, or will the company fully refund your credit card? If the site only offers store credits, find out the time restriction for using this credit.

Don't expect less customer service just because a company operates over the Internet.
Does the site list a phone number and/or e-mail address for complaints?

How long has the company been in business?

Will they still be around when you need them?

Is there a warranty on the product, and who honors that guarantee?

Use Shopper's IntuitionLook at the site with a critical eye. And heed the old adage, "If it looks too good to be true, it probably is."

Are there extraordinary claims that you question?

Do the company's prices seem unusually low?

Does it look like the merchant is an amateur?

Are there a lot of spelling or grammar errors?

Does the company's phone go unanswered?

The use of a post office box should send up a red flag, no physical address is cause for concern.

If any of these questions trigger a warning bell in your head, you will be wise to find another online merchant.

9. Be Wary of Identity Theft

As e-commerce becomes more common so will identity theft committed over the Internet. Scammers can obtain their victims information using low-tech means like dumpster diving, mail theft, or workplace access to SSNs. But they are increasingly using the web to apply for new credit cards and to purchase goods and services in their victims' names.

Check your credit card bills carefully for several months after purchasing on the Internet. Look for purchases you did not make. If you find some, immediately contact the credit card company and file a dispute claim.

Order your credit reports at least once a year and check for accounts that have been opened without your permission.

10. Consider Using Single-use Card Numbers

Consumers using some brands of credit cards can get “virtual credit cards,” or single-use card numbers, that can be used at an online store. The randomly generated substitute 16-digit number can also be used to buy goods and services over the phone and through the mail but can’t be used for in-store purchases that require a traditional plastic card.

With this free service, you never need to give out your real credit card number online. Among the card companies offering it are Citibank and the Discover card.

Additional Resources

Listed below are web sites that provide additional information about shopping online.

www.fda.gov/oc/buyonline Created by the U.S. Food and Drug Administration to provide shopping tips for buying online prescriptions and over-the-counter drugs on the
web.

www.fraud.org The National Fraud Information Center, a program of the National Consumers League, m maintains information about online scams and lets you file complaints online.

www.ftc.gov/bcp/conline/pubs/alerts/glblalrt.htm The Federal Trade Commission's online shopping advice.

www.ftc.gov/bcp/conline/pubs/online/auctions.htm The Federal Trade Commission's tips on Internet auctions.

http://www.ic3.gov/ The FBI's Internet Fraud Complaint Center allows you to report suspected cases of Internet and e-commerce fraud.

http://www.lookstoogoodtobetrue.com/ Federal law enforcement and industry task force helps prevent consumers from becoming victims of an Internet fraud schemes.

www.onguardonline.gov FTC, other federal agencies, and the technology industry offer advice on identity theft, phishing, spyware, spam, online shopping and more.

http://www.safeshopping.org/ Online shopping tips provided by the American Bar Association.

www.wiredsafety.org Provides assistance, information and education to Internet users including identity and credential theft, online fraud and hacking.