March 29, 1999
by Stephen Hildreth
Editor-in-Chief

Online shopping is a new and exciting forum for many people. Shopping from the comfort of your couch and having the merchandise delivered straight to your front door beats the heck out of wasting a Saturday afternoon fighting lines at your favorite superstore. However, many people still balk at the idea of sending their credit card number over the digital superhighway for (potentially) anyone to see. There are some steps you can take to keep your credit card numbers from prying eyes and protect yourself from internet fraud.

For starters, use a 128-bit encryption browser. 128-bit encryption is the highest form of online security available - at least for folks in the US.

Make sure that the vendor through which you're buying goods is using a secure server to process the transaction. Some vendors, like Outpost.com, tell you this on their front page. Secure servers fully encrypt sensitive data for safe, trouble-free transactions. If you use Netscape or Internet Explorer (and are not using a relay or proxy), the transactions are fully encrypted and secure. If you use a relay or proxy, check your browser's lock indicator (usually a picture of a lock or a key) to see if it is secure. Credit card information transmitted online is encrypted while in transit, so that even if the information is intercepted, because it is encrypted, it is useless to a would-be thief. This is where 128-bit encryption comes into play, since it's much more difficult to decode 128-bit encryption.

Certain credit cards, like American Express, don't hold you responsible for transactions resulting from your number being stolen over the web. You can't beat that kind of security. Check to see if your favorite card offers this kind of protection, and get it in writing.

Always use the same credit card for online transactions. This makes it much easier to monitor your statements for problems. In fact, if you might want to reserve one card just for online transactions. This way you'll only have one credit card number floating around cyberspace.

Do a DejaNews search to see if the vendor has a good or bad reputation for integrity. You probably aren't going to want to give your information to a fly-by-night operation run out of someone's bedroom, especially if you see lots of complaints posted in the newsgroups or on website forums. Also, check the vendor's return and replacement policy - can you return the item within 14 days for a refund, or will they charge you a 15% restocking fee? With some vendors, especially on used equipment, all sales are final. Finally, ask if the price is for cash, credit, or either. Many vendors charge 3% more for credit cards, and the prices they list are for cash transactions only.

If you're buying a used Mac, always use a service like TradeSafe for the transaction. They receive the buyer's check, deposit it in a trust account and notify the seller to ship the goods as soon as the check clears. The buyer gets 24 hours to inspect and, if satisfied with the item, TradeSafe immediately sends the purchase funds to the seller. If the item is returned, TradeSafe holds the buyer's money until they know that the goods got back safe and sound. I've personally used TradeSafe in the past and highly recommend their service.

With just a little bit of effort, you can remove the worry from online shopping.