Some Precautions for Online Credit Card Use

There is no doubt that the use of your credit card is much preferable to the use of money orders and cheques for the payment of online merchandise. Payments that are made money order or cheques, can't be canceled in time in the event your merchandise is not delivered.

A common scam of sellers at online auctions is to require only money orders or cheques for payment of goods. Once you determine that the goods are not going to be delivered and that you have been scammed, the scam seller is long gone.

Nevertheless, online scammers are still making good use of credit card numbers that they obtain over the net.

Here are some of the ways that scammers get your credit card number:

• a scam site might offer visitors free 30 day trial period or discounted trial period offers with no further obligation to join beyond that period. In each case a credit card number is required. Once the credit card number is disclosed, the scammer can make use of it.

• a scam site might request a credit card number to verify the age of the visitor as a condition of receiving the free trial period offer. Once again the scammer obtains the number.

• a seemingly legitimate site that gives you the service you ask for and charges you accordingly, can end up selling your credit card number to other scammers or can itself use your credit card to make unauthorized purchases.

Once the scammer has your number he or she can:

• cram your card with expenses that you never ordered.

• charge you for expenses that result from your not reading the fine print. The fine print might have stated that your free trial period membership was conditional on a minimum 3 month membership without a right to cancel or that unless you cancel prior to the end of the free trial period, you would become a member for a minimum time period. In each case your credit card is charged.

• improperly sell your card to another scammer or use your card to make unauthorized purchases.

The problem with online credit card use is that vendors no longer get to see the physical card and signature. There is no physical body who is handing over the card. Accordingly, some of the traditional verification checks and balances have disappeared. In short, the credit card was not meant to be used online.

Many of the credit card scams are occurring at adult websites. Further many of these adult sites are owned by the same operators who perpetrate the same scam over and over again at different sites.

Many scammers are never caught or noticed because they cram small charges to credit cards which people do not notice. Alternatively, many issuers of credit cards fail to stop unauthorized crammed charges month after month because the amounts are small and because of the weaknesses in their systems. Scammers know which credit card issuers have weak systems.

Many people who are scammed at adult sites are afraid to report such scams because of where it occurred. The scammer then continues his or her scam.

What can you do:

• Never give out your credit card number unless you are purchasing an item online with a well known site.

• Be suspicious of any site that requires your credit card number for age verification. This usually is a common scam at adult sites.

• There is no reason to give your credit card number for a free trial period.

• Be cautious at sites that offer a discount introductory trial period especially online adult sites.

• Always read the fine print to determine how to cancel your trial offers or memberships. Some free trial periods actually require you to join a 3 month membership as a minimum.

• Review your credit card invoices upon receipt to for any unauthorized purchases and report any discrepancies to your credit card issuer.

• If, after you have reported any crammed expenses to your credit card issuer, your credit card issuer is still permitting similar crammed expenses showing up on your card, cancel your card.

• Use as few credit cards as possible and destroy and cancel ones that you don't use frequently.

Until a better system is devised, the online use of credit cards is still your best avenue of payment since you can in most limit your losses to $50.00.

If you have been a victim, file a complaint at our site to alert others. Also contact your local better business bureau and your state or provincial governmental consumer department or ministry.

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