5 Tips for Secure Online Credit Card Transactions

However, there are several simple things you can do to make your online credit card transactions even more secure to protect yourself against the risk of identity theft or unauthorized purchases.

1. Choose credit cards that offer liability protection in case of theft. Many cards offer this protection – it means you can only be held liable for a limited dollar amount of any unauthorized transactions made with your credit card if it’s stolen. If you’re using a debit card, you’ll have to check your bank’s policies on unauthorized transactions, as your liability may be different if the card is used as a credit card or used as a debit card (with your PIN).

2. Make sure any website asking for your credit card information is secured using SSL (secure sockets layer) technology. This means that the credit card number (and other data) you send to that site online will be encrypted during the data transfer from your computer to their system. There are a few ways you can tell if an order page is secure. First look at the URL (the website address in your browser’s address bar). Most URLs start with http:// - a secure site should start with https:// instead. Most Web browsers (such as Firefox or Internet Explorer) will also display a lock icon at the bottom of the browser if the page you are viewing is secure.

3. Shop from sites you trust. You can minimize your risk by only giving your credit card information to companies with solid reputations. While any company can hypothetically be hacked or have information stolen, most large or long-standing companies have too much reputation riding on their transactions to take security lightly. If the company is well-established in the online retail world, chances are that they’ve taken more than adequate security measures to protect your credit card information – their business literally depends on it.

4. Use online payment processors (like PayPal) as a go-between. You setup an account with PayPal and have your bank account and / or credit card tied to that account. When you visit online merchants who accept payments through PayPal (and many do – even major online retailers), you can still pay through your credit card, but without ever revealing your credit card number directly to the retailer.

5. Use a prepaid credit card. If you’re still worried about using your primary debit or credit card for online purchases, consider getting a prepaid card to use solely for this purpose. In a worst case scenario, if it’s stolen, the thief won’t have access to your primary accounts – only the money pre-funded to the card. Keep in mind though that not all online merchants are able to accept prepaid cards.

There’s no need to stress over online credit card security these days. Internet security measures have greatly improved over the years, you can easily tell which sites are secure and which ones aren’t, and there are multiple options for credit card shopping on the Web where you don’t have to give your primary card number out. Exercise a little bit of caution and online shopping can be an enjoyable, and completely safe, experience.

Article correct at its author date: August 2008. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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