e-Shopping: Payment

How are you paying for the item?

1. Safest Way to Pay

Why is paying by credit card safer than paying by check, cash, or debit card?
If you have an unauthorized charge on your credit card, under federal law. In fact, some credit card issuers and web site operators say that under certain circumstances they will even pay this amount for you.

Can paying by credit card help in a dispute?

You may be able to dispute the seller’s charges if the goods don’t arrive or if you aren’t satisfied with them and return them. However, under the federal Fair Credit Billing Act, you can only effectively dispute charges billed to your credit card (but that you have not yet paid) if ALL of the following are true:

1. You have made a good faith attempt to resolve the dispute with the seller;
2. The dispute involves the amount of $50 or more; and
3. The dispute arose within the state of your credit card billing address, or within 100 miles of your address

4. The seller of the goods (for example, a department store) has not issued the credit card that you used to pay.

5. If the seller of the goods has issued the credit card you used to pay, as when you use a department store credit card, you may be able to dispute the seller's charges as long as you have first made a good faith attempt to resolve the dispute. The $50, 100-mile requirements do not apply where the seller and card issuer are the same company.
Be aware that if you buy goods or services from a seller through a web site, there may be some legal uncertainty about where a dispute arose.

What are other reasons to pay by credit card?

You may save money by using a credit card if you pay it off in full when the bill arrives. Payments made by credit card allow you to keep the payment amount in your bank account, earning interest, until your credit card bill for those payments comes due.
In addition, some credit card issuers grant you extended warranties or other advantages for purchases made with the card.

1. Credit Card Account Protection
How can you protect against unauthorized use of your credit card account number?
Carefully and promptly check your credit card statements when they arrive. If you identify any irregularities, you should immediately bring these to the attention of the issuer of the credit card by telephone and in writing.
Do you need a separate credit card?
Consider dedicating a single credit card for online purchases. It will be easier for you to review your records. Also, should the security of this number be compromised, you’ll still be able to use your other credit cards.

Do other payment options offer as much protection as a credit card?

When it comes to other types of payment options such as debit cards, money orders, cashier’s checks, certified checks, teller’s checks, and cash on delivery (C.O.D.), you’ll find the level of protection isn’t as high as with credit cards. Although there are pros and cons to these other payment options, using a credit card is still your best bet for safety.

Technorati Tags: online shoping tips,e-shoping