Using Your Credit Cards Safely Online

Are you an online shopper? If so, you're not alone. According to a recent Nielsen survey, nearly 875 million Internet users worldwide have shopped online. A whopping 94 percent of America's Web users have purchased items on the Internet, from clothing and accessories, to books, airline tickets, electronic equipment, music, and computer games. And 60 percent of U.S. online shoppers paid with a credit card.

The convenience of online shopping is appealing, and while millions of shoppers purchase items over the Internet without a problem, with every online transaction, you are vulnerable to identity thieves. Being aware of the risks and following a few basic guidelines is the best form of protection when using your credit cards online. Here are a few tips:

Use a credit card with "zero liability"

According to federal law, if fraudulent charges are made on your credit card, you are responsible for only the first $50 on each card. But there are some credit card issuers who offer zero liability. This means you are not responsible to pay any amount on fraudulent purchases. Check the cards you carry, or shop around for zero liability features, and then use these cards when you shop online. Be sure to check if there are any restrictions, such as reporting the fraud within a certain time frame.

Keep your browser updated for the most recent security features

Always download the most recent version of your browser for the latest technology in encryption capabilities. Encryption is a system that translates the private information you provide online into a secret code. The process of decrypting the information requires a key or password that only the online retailer has access to, making this technique one of the most effective ways to secure online data.

Use virtual/temporary credit card numbers

As an alternative to revealing your real credit card information online, most credit card companies feature the use of a virtual, or temporary, account number. Each credit card issuer will have a different program for their customers' use, so check their website to see what they offer. Basically, it's as simple as clicking your mouse, being assigned a substitute credit card number (for a certain number of transactions or length of time you choose), and then using the virtual account number when making your online purchase. This way, no one but your credit card company will have the real account number.

Is the security of the merchant website trustworthy?

Although most Internet retailers go to great lengths to protect your private information, some websites are more vigilant than others. In order to determine the security of the website you're shopping on, look for the following:

• The security statement/privacy policy explaining the measures taken for your protection (such as encryption) and whether or not they share your information with anyone else. Generally, this is found at the bottom of the home page.
• A security emblem on the billing information page. This will appear as an icon of a closed padlock in your browser window or the URL address will have an ìsî or the word ìsecuredî added after http:// indicating you're on a secure website.

Check your credit card statements

If you use your credit cards online, check your statements each month. If you spot any unauthorized activity, call the credit card company immediately to report it.