Is the net a safe place to order stuff using credit cards or it could lead to theft?
Like all credit card use, it’s safe as long as you check your account balances regularly. Even if someone steals and uses your number, you’re only liable for $50 as long as you report the fraudulent charges relatively quickly.
So, go ahead. But, as always, be sure to read over your statements every month instead of just blindly paying the balance.
-Susan Grant, director of the Internet Fraud Watch (IFW).
In the incidents reported to IFW, consumers overwhelmingly pay for goods with checks and money orders, losing out on the rights they would have if they had used a credit card.
There is an awful lot of information available at the National Consumers League site, but as I look at it, unathorized card usage is way down on the list (it’s not even in the top ten).
One in five consumers reported problems with online purchases (not directly related to fraud). The most common problems were:
8% - products or services that were misrepresented.
6% - products or services that were paid for, but never received.
3% - charges that were billed, but never authorized.
1% - charges that were more than the agreed price.
Additional interesting numbers:
69% of consumers incorrectly believe that it is safer to pay for an online purchase by check or money order rather than credit card. Federal law protects credit cards users if they don’t get what they were promised or unauthorized charges were made to their accounts. Have a gander at the National Consumer’s League most common payment methods for 1999.
Only about half (49 percent) knew that federal law requires online orders to be delivered by the time stated or, if no time period was stated, within thirty days. Forty-seven percent incorrectly thought that they had three business days to cancel online purchases.
Nearly one-third (30 percent) believed that businesses must go through a screening process to ensure that they are legitimate before they can put Web sites up on the Internet.
10 percent of consumers said they were worried that the seller may be fraudulent, though that is actually a greater threat than theft of credit card numbers.
Most reports of fraud are internet auction sales (A staggering 87% of all reported frauds. Many online auctions simply list items that people want to sell. They don’t verify if the merchandise actually exists or is described accurately. Be especially careful if the seller is a private individual. Most consumer protection laws and government agencies that enforce them don’t deal with private sales, so if you have a problem, it could be impossible to resolve), ISP scams (You respond to an offer to help you set up a Web site, create banner ads, list you in a directory or Internet “mall”, or provide other Internet services to your business. The services you’ve paid for are never performed) & work at home plans (You may find that what you are asked to do after you pay is far different from what was stated in the ad. You should never have to pay for a job description or for needed materials. More, it is illegal to do certain types of work at home. See the regulations enforced by the Dept. of Labor for more info in this.
You may be better off paying by credit card than with a check, cash or money order, as long as you know with whom you’re doing business. When you use your credit card for a purchase and there is a problem, you have the right to notify your card issuer that you are disputing the charge, and you don’t have to pay it while your dispute is being investigated. It’s easier to resolve a problem if you haven’t already paid.
When will all the rhetorical questions end?