Safer Online Shopping

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Safer Online Shopping

• Check out the company if you have not heard of them before. You can do this through all the usual methods, the state attorney general's office, the Better Business Bureau (BBB). It's easy to check the company's status online at the BBB's site: http://www.bbb.org. You can also use The Better Business Bureau's site geared exclusively towards online companies. They offer a seal of approval to member companies that promise to abide by certain security and ethical guidelines. The American Bar Association hosts a special Web site for shoppers.
• Find out the return policy on the site. Is it clear? Will they give you a fund refund? How long do you have to return the merchandise?
• Never use a debit card on-line, use a real credit card: It is Safest Way to Pay
• Why is paying by credit card safer than paying by check, cash, or debit card?

If you have an unauthorized charge on your credit card, under federal law your liability is limited to $50. In fact, some credit card issuers and web site operators say that under certain circumstances they will even pay this amount for you.

Can paying by credit card help in a dispute?

You may be able to dispute the sellers charges if the goods dont arrive or if you arent satisfied with them and return them. However, under the federal Fair Credit Billing Act, you can only effectively dispute charges billed to your credit card (but that you have not yet paid) if ALL of the following are true:

You have made a good faith attempt to resolve the dispute with the seller;

The dispute involves the amount of $50 or more; and

The dispute arose within the state of your credit card billing address, or within 100 miles of your address; AND

The seller of the goods (for example, a department store) has not issued the credit card that you used to pay.

If the seller of the goods has issued the credit card you used to pay, as when you use a department store credit card, you may be able to dispute the seller's charges as long as you have first made a good faith attempt to resolve the dispute. The $50, 100-mile requirements do not apply where the seller and card issuer are the same company.

Be aware that if you buy goods or services from a seller through a web site, there may be some legal uncertainty about where a dispute arose.

What are other reasons to pay by credit card?

You may save money by using a credit card if you pay it off in full when the bill arrives. Payments made by credit card allow you to keep the payment amount in your bank account, earning interest, until your credit card bill for those payments comes due.

In addition, some credit card issuers grant you extended warranties or other advantages for purchases made with the card.