Buying things online.

This morning on 7 Networks "Sunrise" morning show there was a segment on how certain Twitter accounts (Mc Donald's being one) were recently hacked and had fake tweets circulated.  In some ways it's a laugh but in other ways it's a little more serious.  If internet giants like Twitter and huge companies like Mc Donald's can't keep their internet security up to scratch, what hope do we have?

To be perfectly honest, there's not a high chance of these highly skilled hackers targeting you personally.  They are targeting huge corporations for what amounts to a publicity stunt.  Still, things can happen.

While many of us are now "online purchasing" veterans and know the ins and outs, some of us still need a little advice.  Why?  The internet is full of wonderful teaching resources and not all of them are free!  Some of us are worried about having our credit card information bouncing around the internet and, although it's rare, bad things DO still happen occasionally. It's not an irrational worry and you should guard your personal information very carefully!

The good news is that there's a couple of simple "everyday life" things you can do to buffer yourself against having things go wrong when buying online.

Make sure you know where you are.

First and foremost, ALWAYS READ THE ADDRESS BAR IN YOUR INTERNET BROWSER BEFORE ENTERING ANY PERSONAL DETAILS!  Yes, all capitals in a sentence is an eyesore but it's really that important.  If you are buying something from a website, especially if you followed a link in an email or from Facebook and the like, make sure that website or their payment provider is the one in the address bar.

Copies of popular shopping websites are out there and they look exactly like the real thing.  You'd never know the difference by just looking at them.  Make sure you read your address bar and make sure you are in the right place!

Debit Cards.

Almost every bank, building society and credit union will have multiple debit cards for you to choose from (Visa cards, Mastercards, etc).  Debit cards are exactly like credit cards, usable in all the same ways, except they don't have any credit attached to them.  You must first put money onto them before spending it.  The beauty of them is that you can't spend any more than their balance.  If you never put any more money on them than you need for a purchase they spend their life at a balance of $0.00 unless you are about to pay something.  

Even if, because it does happen, your debit card information is stolen then there is no money there to spend and no credit to spend money that isn't there.

You should still keep an eye on your transaction reports!  If declined charges start appearing then contact your bank immediately, inform them and have them issue a new card with a new number!  Informing your bank as soon as you know will prevent you from accruing fees for refused charges (if your card has them).

When you want to make a purchase, simply put the required funds on the card and then make the purchase immediately so the money isn't sitting there to be gotten at by unscrupulous individuals.

PayPal.

There are many online credit services but our personal favourite is PayPal.  Not only is it among the safest of these services, it is also one of the most widely accepted.

PayPal is like an online bank account and credit card all in one.  Money can change hands between PayPal accounts almost instantly meaning anything you purchase has an exceptionally short processing time.

Although Paypal fees can be higher than just using your debit card, there are a few security benefits that make it very worth it.

First, by using Paypal your credit card information isn't sent out across the internet to multiple vendors who's online security may or may not be good.  You can even link PayPal to your credit card to use it as a buffer between your information and the vendor.

You can direct deposit from your bank account into your paypal account if you don't want to use your Credit Card online.

You receive an email for each and every purchase made via your Paypal account.  If something has gone wrong, you'll know very quickly!

PayPal also has a Buyer Protection system.  If you buy something online and it is not as described or pictured, or even never arrives, you can lodge a claim within 45 days of your purchase.  PayPal will then investigate and, if they find in your favour, attempt to recover some or all of your money on your behalf!  It's not bulletproof and doesn't cover digital purchases of resources and the like but it's an excellent backstop for physical goods.

PayPal also has the added benefit that it can be deposited into if you sell something online.  You don't have to be handing out your bank account numbers etc for people to pay you!  You might not sell online at the moment but you never know ;).

PayPal is not a small thing and we suggest you have a more in-depth look at PayPal on their website:

https://www.paypal.com/au/webapps/mpp/how-paypal-works.

I have both a debit card and PayPal account for shopping online.  I pick and choose depending on where I'm paying and what I'm buying to keep my fees to a minimum.  I've done a lot of online shopping (and selling) and I've never been caught out sticking to these two methods of payment (knock on wood of course)!

Regards,

Mel.