8 Steps to Ensure Your Online Credit Card Purchases Are Safe

The Internet has as many criminals as real life, and online they can hide behind their computers. Learn how to protect yourself.

Jan 12, 2014 at 9:45AM

The Internet is a scary place. Like the real world, it's full of malice, deceit, and people looking to make a fast buck. But unlike the real world, criminals can run their operations from the safety and anonymity of a keyboard. Like spiders waiting for flies to bumble into their webs, there people out there waiting for you to enter your credit card information into false and insecure payment forms. Don't fall victim to their schemes!

Believe it or not, it's relatively easy to guard yourself against many online scams. As long as you take a few simple precautions, you can help avoid attacks from most fraudsters. Here are a handful of basic tips to make sure your online credit card purchases are safe.

1. Use credit, not debit
The first rule of keeping your payments safe is to always use a credit card. They come with better consumer protections against fraud, and your liability's capped at $50. Many cards also have zero-liability policies, so you're even better protected.

Debit cards aren't quite as comprehensive, and depending on when you report the card missing, you could be on the hook for the entire amount. Stick to credit. If you have doubts about a transaction, you can even use a one-time use credit card to generate a random card number linked to your actual account. This will make it harder for criminals to steal information.

2. Check for the "s"
When it's time to enter your information, make sure the page's address starts with https:// rather than just http:// -- because he extra "s" indicates the site uses an encryption system to scramble your information. The "s" doesn't necessarily guarantee the transaction is 100% safe, but it's a fast and easy check that can give you another layer of confidence.

3. Don't shop in public
This should be obvious. Don't conduct online transactions in public places. Websites often save login information, and you don't want to accidentally leave your accounts open for the next person who hops on the computer. Even if you're good about always logging out, it is possible for hackers to install keylogger information to record your keystrokes. That will give them your usernames, passwords, credit card numbers, and personal information.

Using your own personal laptop or tablet? You're still not safe. A good hacker can snag your information using public Wi-Fi. Only shop online from your own computer (or that of a trusted friend) with a private Wi-Fi connection. If you tend to make transactions in public places, consider getting a VPN.

4. Never give out your SSN
You never need to give out your Social Security number to make a simple purchase. Don't do it. If a website seems to be asking for more information than is normal, leave immediately and don't look back.

5. Keep your anti-virus software up to date
Every computer needs anti-virus software. Otherwise, you leave yourself wide open to attacks and security breaches. Install a trusted software and update it regularly. You should also keep your Web browser and operating system current with the most recent security patches. For people who aren't tech-savvy, this might seem a little complicated, but most of this stuff updates automatically these days, as long as you have the software in place.

6. Check for a seal
Again, this isn't a perfect guarantee of a flawless security system, but it can help you feel better about your purchase. Most legitimate websites will carry some sort of seal of approval from an organization such as McAfee, the Better Business Bureau, VeriSign, or TRUSTe. This lets consumers know someone has taken the time to verify the trustworthiness of the vendor. Of course, these seals can be faked, but if there's no seal at all, you may want to reconsider entering your information.

7. "12345" is not a good password
A strong password is essential. You should always have a mix of numbers and letters, both uppercase and lowercase characters and at least one symbol, like @ or %. Don't use obvious words like your name, your Social Security number, or the word "password." Make it unique and custom, and don't use the same password for multiple accounts. If someone figures out one of your passwords, you don't want them to have instant access to everything.

8. Trust your instinct
If a website seems shady, don't use it. You'll probably be safe at the likes of Amazon.com or Best Buy's website. You can usually trust big names. Treat smaller, lesser-known websites with suspicion. If a site looks outdated or poorly designed, proceed with caution.

If you receive an email with a link to a website, never shop directly through that link -- even if it's a big, well-known company. Instead, navigate to the site through your Web browser. You can go directly to the site if you know the address or bring it up on Google if you don't. This will help you avoid clicking through to fraudulent links.


The Motley Fool recommends and owns shares of Amazon.com and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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