Money
Getting the best deal
Save £100s...with safe online shopping
Up to £14 billion will be spent online this Christmas, a staggering increase of 40 per cent on last year. Sadly though, it is not just the recipients of web-bought gifts who will be left with a warm glow
According to banking group APACS, the internet boom is a bonanza for fraudsters who are committing a crime every eight seconds. How can you protect yourself?
Step one: Read the small print. Don’t just go for the first fabulous festive offer. Make sure you know what company you are dealing with. It helps if you have experience or knowledge of the retailer already, or have had a personal recommendation.
If you absolutely have to make a leap into the unknown, ensure it is a secure website which is indicated by a padlock icon or key symbol at the bottom of the screen. Plus carefully check the online retailer has an address (not a PO Box) and landline number in the real world. You could also check its ranking on www.alexa.com, if it is in the top 100,000 it is reasonably big.
Step two: Record some things, but not others. Print off any emails relating to your purchase, such as confirmation of your order and delivery date.
Never, EVER, write down your passwords, or personal identification numbers (PINs) and do not disclose them over the phone to anyone. Reputable companies would not ask.
Step three: Know your rights. There is a seven day cooling-off period for online purchases, although there are exceptions on some goods such as food and personalised jewellery. Other items such as CDs, DVDs and computer software can not be returned if the seal is broken. However, if you are buying a service and ask for it to start straight away, you give up the right to cancel.
Most importantly, if you pay by credit card for anything costing between £100 and £30,000, your purchase is protected by the 1974 Consumer Credit Act, Section 75. This means your credit card company is jointly liable for any problems that arise and that if you can’t get satisfaction from the retailer if the goods don’t turn up or are faulty, it must step in and refund your money.
And remember: signing for goods at the door does not mean you can not reject them afterwards.
Step four: Consider the alternative. A number of services are emerging for people who do not want to repeatedly give out their credit card details online.
Ebay-owned PayPal is probably the best known, but by being based in Luxembourg it is not regulated by the UK banking authorities.
Another option is the new generation of pre-paid credit cards, such as the Prime card from IDT Finance, which can be topped up like a mobile phone.
Cards can be bought from petrol stations, convenience stores and newsagents with no documents, credit checks or bank account needed. It can be loaded-up from £20 to £150 and used straight away in shops or online.
* Written by Teena Lyons. Teena's opinions are her own and for general information only. Always seek independent financial advice.
