Money
Getting the best deal
Web credit card spending through the roof
Credit card spend on the internet is expected to exceed £19.2 billion this year, but many are concerned about the risks of shopping online - especially when ordering from companies overseas, writes Holly Thomas
Following a landmark House of Lords case this week, purchases between £100 and £30,000 and paid for on a card are covered against damaged or undelivered items - irrespective of where in the world they are bought.
Under section 75 of the Consumer Credit Act, a credit card issuer is jointly liable with the supplier if there is a problem with any goods or services.
In an ongoing legal battle banks have been trying to wriggle out of offering this cover for purchases made abroad - or over the internet from foreign companies.
For those planning taking advantage of the fantastic rate on the US Dollar (more than $2 to the £1) by ordering goods from America, the ruling will offer substantial peace of mind.
"Consumers will now be able to shop with greater confidence," said Martyn Hocking at consumer group Which? Money.
"Foreign travel and the internet have opened up huge new markets. The least consumers can expect is the same level of protection as at home."
Claiming a refund differs for each bank but it's important to keep all invoices and receipts. If an item is faulty or if the seller wrongly describes it or if the supplier goes out of business, a claim can be made.
It is not necessary to attempt to claim the money back from the seller first - the credit card company is individually liable.
Shoppers who pay only the deposit by credit card for an item or service are protected for the total value of their purchase, even where another method of payment was used to pay the balance. Consumers are not covered by section 75 when using a debit card.
There are a number of other ways to protect yourself against being ripped off online. Whenever you are considering buying from a website that is not a well-known brand, or if you are uncertain if it is reputable, think twice about it.
If you decide to go ahead, make sure you take down a postal address and any phone numbers you might need should you have to complain.
There are also concerns when it comes to trusting the technology with your personal and payment details.
You should enter personal information and credit card details only on secure websites belonging to organisations you know and trust.
Remember to log out when you have finished your shopping - research shows about one in eight people forgets to do so, potentially exposing their financial details to others.
* Holly Thomas is deputy consumer finance editor of the Daily Express and Sunday Express. Her views are personal and for information only. Always seek independent financial advice.
