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Using Your Card Online
Internet shopping has become the Internet purchase
this year, in comparison with the 13 percent who bought online over the holiday
season. One of the key consumer fears about Internet shopping—transmitting
credit card information via the Internet is not really a serious problem,
experts say, as long as shoppers are careful.
Paying by credit card is the safest way to shop on the Internet because
many scam artists are not set up to take credit cards and because consumers have
the right to dispute dubious billings under the Fair Credit Billing Act,"
says Susan Grant, vice president of public policy, National Consumers League,
Washington, D.C., and director of the Internet Fraud Watch (IFW). "Of the
350 or so complaints we get each week, 98 percent of them involve a situation
where the person has paid with a money order, cash or check. Our advice is: use
your credit card.
Adam Backenroth, president of the Financial Services Technology Consortium (FSTC), a nonprofit group of some 80 banks, credit card companies and vendors
that is working to strengthen Internet security, says: "The online consumer
is very well protected. At this point, the financial institutions and merchants
are absorbing the risks." The problem for online retailers, Backenroth
says, is that encryption the standard method for sending secure data provides
"an envelope" that assures the sender that the data can't be read by
prying eyes, but it does not necessarily assure the merchant that the buyer is
who he says he is. That assurance is coming soon, Backenroth says, in the form
of digital "signatures" and even "biometrics," such as a
digitally readable thumbprint or even the buyer's voice.
The bottom line for consumers is that the banking industry cannot afford to have
the Internet perceived as unsafe, so individual online financial institutions
have assumed virtually all the risks, quietly taken their losses and are working
feverishly to build a security infrastructure that will protect them from
fraudulent users.
(Source: Newsweek, April 24, 2000 Issue)
Tips for Buying at Auction Web Sites
- Where to turn too
Top
Know the seller. Many sites
offer a profile of sellers based on comments from other buyers. Be aware that
positive comments could be planted by the seller. Get his or her phone number
and mailing address (not a P.O. box). If it's a business, contact your local or
state consumer protection agency and the Better Business Bureau for more
information about it.
For sellers, know the buyer. Check
feedback to see if he or she provides payment on time.
Know the product. Try to determine
the value of the item before bidding. Read the listing carefully, looking for
words such as "refurbished," "close-out,"
"discontinued" or "off brand," especially when shopping for
computer gear or electronic equipment. Be particularly cautious of claims about
collectibles.
Ask about delivery, returns, warranties and
service. Settle whether the buyer or seller pays for shipping.
If possible pay by credit card.
Credit card users are, protected by a federal law that says they have the right
to dispute charges for goods or services they never received, misrepresented
items or charges incurred because the card was lost or stolen. Users must report
the charge within 60 days of it appearing on their credit card statement and
dispute it in writing with their credit card agency. The company will
investigate the claim and potentially give the money he or she lost.
When bidding, do not give out personal
information, such as your Social Security, driver's license or bank
account numbers.
Document everything related to the transaction.
Keep the auction listing, e-mail correspondence, canceled checks, credit card
receipts, phone bills and faxes.
Check the auction site's insurance policy.
Most items on eBay, for example, are covered by insurance for up to $200, less
the $25 deductible.
Consider escrow services, in which a buyer places
money in the custody of a third party. The money is paid to the seller once the
buyer receives and approves the merchandise. The buyer typically pays a fee
based on a percentage of item's cost.
If you're victim …
Seek dispute resolution. EBay, for example, uses
Square Trade, an in dependent third party that provides a trained mediator to
resolve disputes. The process takes about a week. The service is free for items
on eBay that sell for at least $100.
Request the seller's user-registration information from
the auction site. Attempt to contact the seller by phone or by mail.
Send an e-mail to the seller that specifies what you expect and a deadline. Do
not attack the seller's character.
Consider using feedback forums. Post negative
feedback in seller's file. State only the facts.
Tips for Buying at Auction Web Sites
- Where to turn too
Top
Your local district attorney, state attorney general, the Better
Business Bureau and the auction site.
Federal Trade Commission's
Consumer Response Center: 877- FTC-HELP (382-4357); or write Consumer
Response Center, Federal Trade Commission, 600 Pennsylvania Ave., NW,
Washington, D.C. 20580. The FTC can't resolve individual problems but can act
against a company if it sees a pattern of possible law violations.
Internet Fraud
Complaint Center, a partnership between the FBI and the National White
Collar Crime Center: The center reviews major complaints and refers them
to law enforcement or regulatory agencies.
National Consumers
League's National Fraud Information Center: 800-876-7060; P.O. Box
65868, Washington, D.C. 20035;. An incident report form is also available on the
site.
If you believe you're the victim of an online fraud scheme in which the U.S.
Postal Service was used, (visit the site to file a mail fraud
report. Call 800-275-8777.
Sources: USA TODAY research, eBay, Internet Fraud Complaint Center, National
Fraud Information Center, Tessa Herbert and The Online Auction Users
Association, Federal Trade Commission
Tips for Buying at Auction Web Sites
- Where to turn too
Top
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