Consumers Face Online Holiday Shopping Season with Credit Card Worries, Misconceptions, NCL Survey Shows

National Consumers League Launches New Tips for Safe Shopping Online

    WASHINGTON, DC—According to a recent NCL survey, consumers’ primary concern about shopping online is that their credit card numbers will be stolen (43 percent). Additionally, a whopping 59 percent mistakenly believe it is safer to pay for an online purchase with a check or money order than with a credit card.

    “Our survey shows that consumers are still worried about putting their credit card numbers online,” says Susan Grant, director of the National Consumers League's Internet Fraud Watch. “But credit cards are the safest way to pay because you can dispute the charges if something goes wrong, and new technologies like substitute or single-use credit card numbers add an extra measure of protection against someone else fraudulently using your account.”

    E-commerce is big business—consumers spent nearly $26 billion online last year, according to the U.S. Department of Commerce. More than half (55 percent) of NCL’s respondents with Internet access said they placed an order online in the previous 12 months, compared with only 44 percent in a similar 1999 survey.

    NCL launched an educational campaign today, made possible with an unrestricted educational grant from Orbiscom (www.Orbiscom.com), to help consumers shop safely online. The campaign includes a new Web page, www.nclnet.org/shoppingonline with:

§      Six tips for safe shopping online,

§      Online Shopping survey results,

§      Information about privacy, security and safety on the Web,

§      Facts about Internet fraud, and

§      Links to valuable online resources.

“As the leading provider of single use or substitute credit card numbers, it's important for us to work with organizations like the National Consumers League to educate consumers about safe online shopping alternatives,” said Ray Sheridan, Chief Operating Officer, Orbiscom Inc. “The need to alleviate consumers’ fears about online shopping becomes critical as we move into the holiday shopping season when e-tailers are looking not only to survive but turn a profit in 2002.”

Six Tips for Shopping Safely Online from the National Consumers League         

1.      Get the scoop on the seller. Check complaint records at your state or local consumer protection agency and Better Business Bureau. Get the physical address and phone number to contact the seller offline. Look for sellers belonging to programs that encourage good business practices and help resolve complaints.

2.      Use a credit card. It’s the safest way to pay because you have the legal right to dispute charges for goods or services that were never ordered, never received, or misrepresented.

3.      Ask your credit card issuer about “substitute” or “single-use” credit card numbers. This new technology allows you to use your credit card without putting your real account number online, protecting it from abuse by “hackers” or dishonest employees of the seller.

4.      Look for clues about security. When you provide payment information, the “http” at the beginning of the address bar should change to “https” or “shttp.” Your browser may show whether the information is being encrypted, or scrambled, as it is being sent. See what Web sites say about how they safeguard your information in transmission and storage. Don’t provide sensitive information by email.

5.      Know the real deal. Get all details before you buy: a complete description of items; total price, including shipping; delivery time; warranty information; return policy; and what to do if you have problems.

6.      Keep proof handy. Print and file the information in case you need proof later.

The National Consumers League, founded in 1899, is America's pioneer consumer organization. Our mission is to identify, protect, represent, and advance the economic and social interests of consumers and workers. NCL is a private, nonprofit membership organization. For more information, visit www.nclnet.org.

###