Shopping online

Online shopping is incredibly convenient because you can find the lowest prices and best deals for products and services. However, you need to learn that getting a great deal online involves considerably more than getting the lowest price. You should be sure that the product arrives on time, that it is of the quality you expected, that it includes a proper warranty, and that there is a way for you to return the product or get support with any questions or issues you have.

The fundamental safety consideration when shopping and performing transactions online is the same issue Internet users have to consider when sharing personal information: trust. Learning how to determine which companies, institutions, and individuals are worthy of your trust when it comes to your financial information is a critical life skill. Click this link to learn how to identify secure/trusted Web sites.

Before buying anything online consider these questions:

1. Do you know the store from the brick-and-mortar world? If the Web site is owned by a store you already do business with and where you can physically return any item, or you have experience with their level of service and trustworthiness, you are probably in good hands.

2. What is the site’s reputation? If you know others who have had consistently positive experiences with the online store, you can be reassured of the site’s quality. If you do not know others who have used the site, do your own background check by looking at sites dedicated to reviewing e-stores (for example, Epinions, BizRate, Better Business Bureau). Another Web site to consider is The National Fraud Information Center which watches out for shady Internet dealings and offers consumer tips on its Web site.

3. Is the Web site secure? Legitimate online merchants offer secure transactions. Look for two assurances to see if you are on a secure site. The URL should show Https: when you are making a purchase and there should be a lock symbol in the lower left corner of your screen.

4. Is the offer ‘too-good-to-be-true? Avoid buying from any e-store that promises too much at too low a price. If the price is low, you have to consider whether the merchant came by the items legally, whether you will ever receive the items, whether the items will work, if you will be able to return damaged goods, or if the merchant is also generating revenue by selling your financial information. Disreputable stores frequently run an absurdly low price offer and then, claiming the item is out of stock, try to sell you something else; this is a classic "bait and switch" technique.

5. Does the merchant collect more information than is necessary to complete the sale? You will need to provide some method of payment, address, and telephone number. If a merchant requests your bank account information, social security information, or driver’s license number, NEVER provide it. Some reputable companies ask additional questions about your interests. This should always be optional. Remember, your information is a commodity and you should feel you are getting appropriate value – and control – before providing your information.

6. Use a payment service or credit card for payment rather than a debit/ATM card, check, or cashiers check, wire transfer, or money order. Click here for more on payment services. Payment services (such as PayPal) allow you to register with them and then pay companies through them without ever exposing your credit card number.

Credit card purchases limit your liability to no more than $50 of unauthorized charges if your financial information is stolen. It is wise to have a dedicated e-mail account for online shopping and transactions, and to use one credit card exclusively for online purchasing and transactions. If that card gets compromised, you can quickly shut it down.

7. Review the company’s shipping methods. Understand what carriers they use, their shipping rates, and if they provide tracking and insurance.