Articles - Archived Expert Advice

Online Shopping

My family makes a lot of purchases online. What's the safest method of payment: credit cards, debit cards or e-checks?

The safest way to shop on the Internet is with a credit card. If something goes wrong, you are protected under the federal Fair Credit Billing Act. You can dispute charges on your credit card and withhold payments during a creditor investigation. If it is determined your credit card was used without authorization, you are only responsible for the first $50 in charges—and you are rarely asked to pay that charge.

Consider obtaining a credit card you use only for online payments to make it easier to detect wrongful charges. Make sure the credit card is a true credit card—not a debit card, check card or ATM card. These cards are not protected to the extent that credit cards are, and can potentially expose your account to thieves.

Checks, whether agreeing to send in a paper check or authorize an e-check, are also a bad idea when making online purchases. This method of payment can leave you vulnerable to bank fraud. Don't send a cashier's check or money order either. They don't offer you protection if you have problems with the purchase.

Lastly, avoid using money transfer services. Scammers often ask consumers to pay by using a money transfer service, such as Western Union or MoneyGram, because they can get your cash fast and it's difficult to trace. Legitimate businesses normally don't ask for this type of payment. Money transfer services should only be used to send money to people you know well, not to unknown, online sellers.

If you don't already have one, consider an LGFCU Visa Credit Card. With no annual fees, a very competitive rate, and a wide range of credit limits to suit all your family members, it's a safe card for making all your online purchases.