How to Protect Your Credit Card Information when Shopping Online

So, you've started shopping online and want to know how you can protect your credit card information from being stolen and abused. Unfortunately, it is not possible to be completely safe regardless of what you do; however, these tips may save you some hassle. These tips were offered up recently in a discussion amongst some of the system administrators. Thanks to: Bill Day, Tom Moore, Joe Shamblin and Hunter Moricle.

• Make certain that the site is encrypting your credit card number when you send it to them. Usually, your web browser will have a small picture of a lock that is open at the bottom of the page. When the company is using encryption the lock picture will show a closed lock indicating increased security. Another way to determine if you are using encryption is to check the URL of the current page (this is often listed near the top of the web browser). If the page URL starts with http:// then the page is NOT encrypted. If the URL starts with https:// then the page is encrypted.

• Consider using only one credit card online. This may not protect that one credit card, but it definitely limits your exposure.

• Use a credit card that has a good policy regarding your liability in case the credit card number has been stolen. Most major credit cards limit your liability to $50 or less; however, you should check on the specifics of your card.

• Never use a debit card online. Surely you would prefer to dispute a potential charge on a credit card than a charge that has wiped out your checking account.

• Where possible, have your vendor NOT store your credit card number for use next time. This is no guarantee that they don't have your credit card number stored in a database, but, it may keep your card number off of their web server.

• Finally, some credit card companies offer one-time use credit card numbers that are tied to your main account. You present the one-time use number to the vendor, to whom it looks like a regular credit card number, but any subsequent attempts to use it will be denied. This is probably the BEST way of protecting yourself. I can't find any information regarding MasterCard and Visa, but American Express and the Discover Card both offer this service.

  UPDATE: American Express no longer offers this service, leaving only the Discover card. (20 Feb 2006)