What Are the Advantages of Paying With a Credit Card Over the Internet?
- You are protected in several ways when you use your credit card online.credit card and hand image by Warren Millar from Fotolia.com
In 2009, shoppers used credit cards for 43.5% of online payments, according to InternetRetailer.com, an e-commerce informational website. Making credit card payments for goods purchased online offers several advantages for the consumer. These include convenience and protections against unauthorized use and unsatisfactory goods and services. - Credit cards are convenient because you pay immediately instead of having to mail a check or money order to the online company. The merchant then can send your merchandise promptly rather than waiting for the money to arrive. You have an automatic record of the transaction on your credit card statement if the company claims it did not receive the money. You may able to store your card number and other billing information at websites from which you make purchases frequently. Consequently, you won't have to consult your credit card every time you buy something on those sites. Services such as PayPal and Google Checkout allow you to store your credit card number on a single site to pay multiple companies.
- Anyone can set up a website that looks legitimate, and even prominent Internet businesses can have their payment records stolen. You are protected from fraudulent charges when using your credit card online by a law called the Fair Credit Billing Act. Most credit card issuers provide 24-hour phone lines to report fraudulent charges, according to the FTC. Such charges are removed from your account when you report them. In addition, the bank can close your account and reissue a new card number if the old one has been compromised. The Truth in Lending Act says you are liable for up to $50 in fraudulent charges until you report the problem, according to Leslie McFadden of Bankrate.com, a financial website.
- People often buy items over the Internet without seeing them in person first. This creates a risk of receiving a poorly made or defective item. McFadden at Bankrate.com explains that paying with a credit card insulates you from this risk because it gives you the right to dispute the sale under the Fair Credit Billing Act. Technically, according to the law, the goods you purchased must have cost $50 or more. In addition, the seller must be located in your home state or within 100 miles of your mailing address--check with your card provider regarding goods ordered by phone or over the Internet. The law requires you to work with the merchant first to resolve any issues. You can file a dispute if the seller refuses to resolve such issues satisfactorily. Send documentation of your efforts to your credit card company within 60 days of the disputed charge. You won't have to pay for the defective merchandise if the card issuer agrees with your dispute.
