home | banking | car | college | credit/credit card | economy | home/mortgage | insurance | investment | retirement | spending | tax | et cetera

December 6, 2004 01:10 PM

Credit Cards Offer Safety In Buying Online


Excerpt: mart consumers always reach for a credit card when they buy online because cards offer charge-back rights and a shopper's liability is limited to $50 in case of fraud or theft.


When it comes to buying online, credit cards are the only way to fly.

"The bottom line is that people feel a lot safer (using credit cards)," says Linda Sherry, spokeswoman for Consumer Action, a nonprofit advocacy and education group. "Much as I advocate pay-as-you-go, when shopping online or with merchants you don't know, a credit card is a lot safer."

But not all cards are created equal. Depending on your card brand and the issuing bank, your plastic may offer some, all or none of the following:

Zero liability: Offered by credit card issuers, including Visa, MasterCard, DiscoverCard and American Express. When someone steals your credit card and makes charges without your permission, you are responsible for the first $50. But if your card offers "zero liability," you're not responsible at all. Downside: Some cards require that you adhere to certain rules, like reporting the fraud within a certain length of time, so it pays to know how your card works.

One-time use/virtual or temporary numbers: Offered by credit card issuers, including Discover; also by some banks, including MBNA. You download a piece of software from your card's site or go to the site and login to your account and get a "disposable" number, good for one online purchase only. The downside: Some cards will let you use these for recurring charges (like that monthly club membership) for up to a year, others won't. And you can't use them to pay for things online that you will pick up in person, such as airline tickets. The reason: Many times merchants want to verify that you're the person who paid for the goods, and will ask you to show the card you used for the purchase. With a disposable number, the two won't match.

Read Full Story ...



MBNA Pitches Rival Visa Card (December 14, 2004)
Just weeks after it began issuing cards from American Express Co., MBNA Corp. is telling potential customers that a rival card from Visa USA Inc. is "the only card you need to carry." MBNA, one of the nation's largest credit-card issuers, has begun to pitch ...
Credit Card Loyalty Put to the Switch Test (December 09, 2004)
When Patrick F. McIntyre received two American Express cards in the mail last month, he did not feel as if he had been welcomed into an exclusive club. Instead, he felt like a pawn in the credit card industry's latest maneuver. The MBNA Corporation, the ...
How to Deal With Your Debts (December 04, 2004)
Once you've obtained credit, it's easy to be overwhelmed. You may overspend, become ill, or lose your job, making it difficult to keep up with your bills. If you cannot resolve your credit problems alone or you need additional assistance, you may wish to contact ...
FACTA & Your Credit (December 03, 2004)
A new federal law that entitles consumers to free credit reports sounds great, but the devil is definitely in the details. The Fair and Accurate Credit Transactions Act (FACTA), which went into effect this week, entitles consumers to access to one free credit report from ...

Read all 21 posts in the same category of Credit/Credit Card:

Citigroup Says It Will Issue American Express Cards - Dec 17, 2004
MBNA Pitches Rival Visa Card - Dec 14, 2004
Credit Card Loyalty Put to the Switch Test - Dec 09, 2004
How to Deal With Your Debts - Dec 04, 2004
FACTA & Your Credit - Dec 03, 2004
Warning On Internet Loans - Dec 02, 2004
High Court Sets Truth In Lending Limit - Dec 02, 2004
Free Credit Reports May Reveal Surprises - Dec 01, 2004
Free Credit Reports Coming, With Pitches - Nov 30, 2004
Teens Need To Embrace Identity Protection - Nov 30, 2004
What to Do About Your Credit - Nov 29, 2004
A Generation Weighed Down By Debt - Nov 28, 2004
7 Ways to Improve Your Credit Score - Nov 25, 2004
Free Credit Report Details Announced - Nov 25, 2004
One Late Payment Can Hit Finances Hard - Nov 25, 2004
Free Credit Reports Are On The Way - Nov 23, 2004
Card Debt - Nov 22, 2004
Soaring Interest Compounds Credit Card Pain for Millions - Nov 20, 2004
Gas Cutter - Nov 02, 2004
Payment Rates - Nov 02, 2004