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By Claire Stevenson
Staff Writer
Monday, 4 August 2008
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INCREASING numbers of people look to the Internet to satisfy their shopping needs, whether it’s the latest boys’ toy or fashion item. Consumers, it seems, can’t get enough of online shopping.
But buying online isn’t without its problems. There are plenty of phishers and ID thieves just waiting to pounce on your details if you get complacent.
And some credit cards offer little or no protection if something goes wrong with the transaction – for example, the goods don’t arrive or they’re damaged when they do.
So what’s the solution?
Credit cards are often viewed as the safest way to buy goods online.
Under UK consumer credit laws, most credit card providers offer protection on purchases over £100 and up to £30,000. This usually means you can claim against the trader or the credit card provider if something goes wrong.
The Egg credit card will cover you for purchases even less than £100: protecting all purchases above £25. You can apply for an Egg credit card here.
But there’s a multitude of credit cards out there, so if you want to compare credit cards for online shopping, here’s what you should be looking for.
Key words and phrases to look for
Look for words and phrases like ‘online protection’, ‘secure services’, ‘extra protection’, ‘reduce risk of fraud when shopping online’, and ‘Internet shopping promise’ when you compare credit cards – they’re really good indicators that you’ll get reassurance and peace of mind when buying online.
The big two brands
We’re talking Mastercard and Visa here. They both offer secure services which make shopping online more hassle-free:
- Mastercard has something called SecureCode which applies to some of its credit and debit cards. It’s a secret code to protect you against unauthorised use of your card when you shop online.
- Sign up with Verified by Visa and each time you shop with a Verified by Visa online retailer, you get a personal assurance message from your card issuer asking you for your secret password. Enter the password, wait for your identity to be confirmed and hey presto, the job is done. You choose the password when you sign up.
What perks should I be looking for?
- How about 0% on your purchases for starters? This way you’ll benefit from your card provider’s Internet shopping protection and a great introductory rate, meaning you don’t have to worry about paying back that pesky interest for a while.
 Currently the best credit card for this is the Capital One Platinum card which offers 0% on purchases until Nov 2009, as well as an Internet Fraud guarantee and a free identity theft help service. The card has an APR of 14,9% and being a Platinum card, you must be over 21 and have a good credit rating to apply.
You can apply for it NOW.
- Many credit cards offer cashback rewards, friends and family bonuses, 0% on balance transfers and various discounts too. Two pence off a litre petrol, anyone? Or how about free home delivery on high street purchases?
Currently the best credit card for this is the American Express Platinum card which is offering up to 5% cash back! The card has an APR of 18,9% and being a Platinum card, you must be over 21 and have a good credit rating to apply.
You can apply for it NOW.
Do any cards provide insurance on my purchases?
Internet delivery insurance is another perk to consider when you compare credit cards for your online shopping needs.
If you shop online often, it’s probably wise to look for a credit card that offers this, which means you’ll be covered from the moment you buy against loss, theft and damage to your goods until they arrive at your front door.
What about Internet shopping promises?
An Internet shopping promise from your credit card issuer usually protects you against fraud, but as a safeguard you have to take sensible measures when you shop online.
So you shouldn’t do things like giving anyone access to your PIN or account details, and don’t let anyone else use the card.
Anything else I should look out for?
- Don’t sign on the dotted line without reading the credit card small print beforehand. You never know what’s lurking in it until you read it. The card details on our review pages of each credit card will always point out the sneak small print traps you should watch out for.
- And look out for annual fees when you compare credit cards – some charge, others don’t.
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