Christmas Shopping Online
Introduction
Christmas shopping season is in full swing and there are really only two
ways to get those presents you’re searching for:
Wading through the crowds in all of the retail stores,
Shopping on the Internet.
There are plenty of books on how to deal with scams in the retail stores,
and, truthfully, most of these scams are pretty straightforward and easily
detected by consumers.
The Internet has taken its place beside the telephone and television as an
important part of people’s lives. Consumers use the Internet to shop, bank
and invest online. Most consumers use credit or debit cards to pay for online
purchases, but other payment methods, like "e-wallets," are becoming more
common.
We want you to know about these payment technologies and how to
make your transactions as safe and secure as possible. Keep these tips in
mind as other forms of electronic commerce, like mobile and wireless
transactions, become more available.
How would you like to pay?
Most online shoppers use credit cards to pay for their online
purchases. But debit cards — which authorize merchants to debit your bank
account electronically — are increasing in use. Your debit card may be an
automated teller machine (ATM) card that can be used for retail purchases.
To complete a debit card transaction, you may have to use a personal
identification number (PIN), some form of a signature or other identification,
or a combination of these identifiers. Some cards have both credit and debit
features: You select the payment option at the point-of-sale.
But remember, although a debit card may look like a credit card, the
money for debit purchases is transferred almost immediately from your bank
account to the merchant’s account. In addition, your liability limits for a lost
or stolen debit card and unauthorized use are different from your liability if
your credit card is lost, stolen or used without your authorization.
Other electronic payment systems — sometimes referred to as
"electronic money" or "e-money" — also are now common. Their goal is to
make purchasing simpler. For example, "stored-value" cards let you transfer
cash value to a card. They’re commonly used on public transportation, at
colleges and universities, at gas stations, and for prepaid telephone use.
Many retailers also sell stored-value cards in place of gift certificates. Some
stored-value cards work offline, say, to buy a candy bar at a vending
machine; others work online, for example, to buy an item from a website;
some have both offline and online features. Some cards can be "reloaded"
with additional value, at a cash machine; other cards are "disposable" — you
throw them away after you use all their value. Some stored-value cards
contain computer chips that make them "smart" cards: These cards may act
like a credit card as well as a debit card, and also may contain stored value.
Some Internet-based payment systems allow value to be transmitted
through computers, sometimes called "e-wallets." You can use "e-wallets" to
make "micropayments" — very small online or offline payments for things
like a magazine or fast food.
When you buy something using your e-wallet, the balance on your
online account decreases by that amount. "E-wallets" may work by using
some form of stored value or by automatically accessing an account you’ve
set up through a computer system connected to your credit or debit card
account.