ASK MR. MODEM

Tame Your Digital-Plastic Phobia!

Why Using Credit Cards Online

Is Safer Than Using Them Offline

By Richard A. Sherman

any people are adamant about not providing credit-card information on the Internet, but when asked to articulate their concerns, the response is usually something along the lines of: "I don't think it's safe," or "I'm afraid my credit card will be stolen." Regardless of the precise words, it's generally a nonspecific sense that credit cards are routinely stolen while being used online.

            Though myths and misinformation about the use of digital plastic abound, the truth is there has never been a single, documented incident of credit-card information being intercepted (stolen) while being transmitted over the Internet. Ever. In fact, using a credit card may be the safest and most convenient way to shop online.

            What is commonly misinterpreted as an Internet vulnerability occurs when credit-card information, residing in merchant or financial institution databases, is accessed by hackers. For example, a recent news story focused on a hacker who used the Internet to gain access to 5.5 million credit card accounts by breaching the security of a company that processes transactions for merchants.  

            Even though the incident was the result of a hacker gaining unauthorized access to a database, the credit cards involved had nothing to do with online transactions. In fact, the hacker-accessed account numbers included millions of credit cards that were never used for a single online transaction. Stories of this type are frequently and incorrectly perceived as an indication that using a credit card online is not safe. Nothing could be further from the truth.

            A credit card provides excellent protection for online consumers. In the U.S., credit-card purchases are protected by the Fair Credit Billing Act. If a merchant fails to perform, or a product purchased is not as represented, you can challenge the charge by notifying your credit-card issuer. If your credit card is used without your permission, your maximum liability is $50, though most banks and credit-card issuers waive the charge if a problem is reported in a timely manner. According to Visa and MasterCard, cardholders will not be responsible for any unauthorized transactions as a result of the 5.5 million credit-card caper. 

            Many Web sites (including this one) use Secure Sockets Layer (SSL) technology to encrypt credit-card information transmitted over the Internet. Look at the address field on any Web page that requests your credit-card information. If the Web address begins with "https" instead of "http," SSL technology is in place. Other means of determining if a Web site uses security software include the appearance of a little locked padlock or an unbroken key icon in the lower portion of the Web browser (typically Internet Explorer or Netscape.) 

            Using a credit card for online purchases from a reputable merchant is actually less risky than using a credit card off-line at bricks-and-mortar establishments. When you use your credit card to pay for dinner at a restaurant, for example, your food server will usually take your credit card to an undisclosed location and bring back a slip for you to sign. After you sign it, you take your copy of the receipt, leave the other copies on the table and walk away. Holy insecurity! Yet most of us never give that process a second thought because it's comfortable, it's familiar, and history has demonstrated to us that using a credit card off-line is safe. Because the Internet is still relatively new, it is viewed with a bit more suspicion and concern. Over time, however, using a credit card online will become as comfy and familiar as using it to order merchandise via telephone or fax. 

            So the next time you read or hear an "Internet Stolen Credit Card" story, ask yourself, “Is it really a story about data being stolen while being transmitted over the Internet—or is it a story about a merchant failing to properly secure information that was safely and successfully transmitted via the Internet?"

            The bottom line is this: Think before you don’t act. Using a credit card online is about as safe as it gets, particularly if you confine your transactions to reputable merchants whom you know and trust in the off-line world.  Below are the basics to keep in mind when you’re spending time spending money online.

   Do’s and Don’ts for Online Shoppers

1.  Shop for brand names sold by merchants you know and trust.

2.  Always pay by credit card, because it gives you the added protection of being able to dispute charges for unsatisfactory items.

3.  Do not click the "Submit" button more than once when placing an order online. Doing so will result in multiple orders being placed. If an e-mail confirmation of your order does not arrive within 24 hours, check with the merchant before placing another order.  

4.  Print and save a copy of your completed order form and any e-mail confirmation received.

5.  Use common sense!  Listen to the voice of your inner modem:  If anything about a retailer or transaction makes you uneasy, do not place your order.

            If you’re still uncomfortable about entering in your credit-card digits, make your first stop www.safeshopping.org. This site, a project of the American Bar Association, is an excellent guide for all e-shoppers. Despite having been written by lawyers, the material is readable, succinct, and “wherefore" and "whereas” free. For more information, feel free to contact Mr. Modem at MrModem@MrModem.net.

 _____________________________________

Richard A. Sherman, a k a Mr. Modem, is a nationally syndicated columnist, whose “Ask Mr. Modem!” column appears in more than 60 publications throughout the U.S. and in Canada. As publisher of the popular “Ask Mr. Modem” weekly newsletter, he provides easy-to-understand, non-technical, computer- and Internet-related answers to questions received from subscribers worldwide. He is the author of eight books, including “Mr. Modem’s Internet Guide for Seniors” (Sybex) and “Ask Mr. Modem,” a collection of hundreds of frequently asked computer and Internet questions received from readers. Richard is a contributing editor to TechTV and host of the daily "Mr. Modem Minute" television segment produced

by FOX-TV.

E-mail this article.

___________

SITES WORTH SEEING

Consumer World

www.consumerworld.com

Directory of Safe Shopping Sites

www.thepubliceye.com/

search.htm

Fraud Bureau Complaint Center

www.fraudbureau.com/database

/submit.html

National Fraud Information Center

www.fraud.org/

___________

MAKING BREAD RECOMMENDS

Click on covers to read reviews and order.

.