When you are buying online, it can feel like you have unlimited options of goods and services. When it comes to payment options, there are also many options to choose from. Credit cards, e-wallets such as PayPal and Google Checkout, bank transfers, cash on delivery, prepaid cards and the list goes on. In this blog post, let’s explore the credit card option when making purchases online.
While having and using a credit card is not for everyone, if you do choose this option, depending on your card, you may have added coverage in the event your items are not delivered or unauthorized transactions are charged to your card. If this happens to you, contact your credit card provider to see if you are eligible for a refund. These benefits can be useful but you still need to be savvy about how you use your credit card online. Here are 5 tips we want to share with you:
1: Consider having a designated credit card for online purchases
You may wish to have a credit card that’s only for online purchases. This would allow you to accurately track your online purchases (and returns) and ensure that there is no unauthorized use of your card. If you’re having issues with your online purchase, check out this page on our website – Problem with an online purchase? for more information.
Find out what currency is being used:
By law in BC, when you enter into a distance sales contract, companies are required to disclose the currency in which the amount owing is payable. If you don’t find out this important information, you could end up paying more than you want (including possible credit card currency exchange fees!)
2: Check your credit card statement frequently
Accessing an online statement may make it easier to check your usage frequently. If you notice that there is a charge you don’t remember or that seems different than the total price of an item, contact your credit card company right away.
3: Check the buyer protection
Does your credit card provide a buyer protection plan? Some credit cards may provide coverage for items purchased with a card if the item is damaged or stolen within a certain amount of days from the point of purchase. This is something you will want to check prior to getting or using the card.
4. Don’t store your card information on a website
Storing your card information on a computer may put you at risk of your information being compromised. When your computer asks to “remember” your site password or your card number, we suggest clicking “no”.
5: Know your limit
Online shopping can be fun but remember, you have to make payments later. Budget what you can afford. Credit cards may be an easier and more convenient way to shop, therefore overspending can be an issue. Set up a budget and practice tip #2, check your statement frequently to see where your spending is at.
Here are some real examples of fake online stores from Get Cyber Safe. If you have additional tips or budgeting tips, share your thoughts and ideas in the comments below!
November is Financial Literacy Month (FLM) and throughout the month, the Financial Consumer Agency of Canada collaborates with various organizations to promote financial literacy for Canadians of all ages. To support this initiative, we are featuring online shopping tips on our blog to help you stay savvy.
ADDITIONAL READING:
Our top 5 tips for online shopping
How to request a refund from your credit card provider
Are you liable for charges on a lost or stolen credit card?
I think the most impoirtant part in these tips is know your limit. This the last but not the least.
I avoid giving my credit card number to online merchants by using Paypal for payment. If a merchant does not accept Paypal I am suspicious and have second thoughts about the purchase. This leads me to do more research on the merchant before making a purchase.
This is a good strategy, Don! Re-thinking about purchases online is always a good idea, doing the research beforehand is excellent. Thank you for sharing your thoughts.
PayPal is terrible!
I was quoted a price in CANADIAN dollars from a website & ended up being charged in US. I also paid extra for 5 day delivery believing the retailer was in Canada. On top of that the company THEREBYE had a bye 5 get 3 Free promotion.
I didn’t get my extra 3 items. The package ordered Nov 18th didn’t arrive until Dec 6 & did not include my 3 free items. Quality was not what was shown.
PayPal gave me the run around asking for a receipt which the retailer didn’t provide, but PayPal did including exchange fees. I submitted a complaint which was denied. I emailed screen shots which they refused to acknowledge because I only have 1 email address. They kept me on hold waiting for an agent. Their website is onerous to use for disputes & they denied my claim eventhough they had confirmation of the US converted to CANADIAN charge and THEREBYE quoting price in CANADIAN.
PayPal protects scam retailers.
Won’t ever use them again!!!
Don’t ever used PayPal.
I had one experience with them that was somehow link to a Ransom Ware that was used in the PayPal email and I lost everything on my computer plus a $200 bill paid to computer nerds that thought they could get my computer information back, which they could not.
I REPEAT-DON’T EVER USE PAYPAL!!!!!