Be sure your online credit card processing is secure

E-commerce and credit cards

Electronic commerce, or e-commerce, is the buying and selling of products and services over electronic media such as the Internet, extranets, emails and mobiles. However, e-commerce is predominantly transacted on the Internet.

Any website engaged in e-commerce activities must be equipped with systems that enable online credit card processing and prevent fraud in credit cards when the credit card processing online is carried out. . And that is because Ccredit cards are in use internationally in use and people across the world are developing a habit of using plastic money in transactions rather than physical cash. Therefore, it is very necessary that an e-commerce website accepts credit cards. Of course, there are other ways to make payments over the Internet such as online checks, debit cards, digital cash, escrow services and more, but all said and done, credit cards are the “king” when it comes to making payments online.

Internet credit cards transactions

When an e-commerce deal is transacted over the Internet, the seller cannot physically verify the credit card used. The buyer merely enters the card number along with the security code and if there is a sufficient balance and these numbers tally, the transaction is executed.

Now all this is risky. The seller does not know who is punching in the numbers and, for all he knows, it could be a fraudster. Therefore, it is important that a website that accepts credit cards must be digitally secure. A secure site lends itself more credibility by making the buyer feel safe.

Online credit card processing: Precautions to take

There are a whole lot of online stores that look professional, feel secure, and give you the impression that the site belongs to a reputed company that really loves and cares for its customers. The reality may be exactly the opposite.

You as the buyer have the responsibility of safeguarding your money by taking precautions when using your credit card on the Internet. And, the following are some of the “common sense” precautions you must take:

Confirm that the website does belong to an established and trustworthy retailer.
Does the site have a physical address? If the website you are shopping on has given a post office box as a physical address then chances are that you will be shipped bad-quality goods in exchange for hard-earned cash.
The site must post a return and refund policy.
Read the privacy policy. It is important that the information you enter on the site must be kept confidential.

These are the basic precautions. Now we come to the important aspect of website security.

Is online credit card processingonline credit card processing secure?

All online transactions need to be secure. Good online stores normally feature a secure page and the fact that you are entering a secure site or a secured area of the site is communicated to you. When you enter a secure area, you will see a lock icon which indicates that the website is using some kind of a security system. The following is a routine kind of security check you can carry out while shopping online:

When you are shopping online, check the address bar in your browser: it should begin with “https”, not “http”, with the “s” standing for “secure”.

Any reputable online store normally carries a digital certificate. These certificates authenticate the website. Independent companies such as Verisign issue these certificates after a comprehensive check. When you are on an online store, look for such digital certificates.

Check the review of the store's privacy policy. Companies such as Trust-E review a company's privacy policy to see if it conforms to consumer protection standards, and if it does then the reviewing company issues a certificate and allows the store to place its logo. Look for such privacy policy reviews too.

Online credit card processingOnline credit card processing: Security systems demystified

The Internet Engineering Task Force has approved two popular security protocols: SSL and S-HTTP. Here is their brief outline:

Secure Sockets Layer (SSL):

This is a cryptographic system that is used for transmitting private documents on the Internet. SSL creates a secure connection between the shoppers' system and the server, encrypts confidential user information, and transmits it over the Internet. Websites that use SSL have addresses that begin with “https”, not “http”.

Secure HTTP (S-HTTP):

S-HTTP is designed to transmit individual messages securely over the Internet, but does not create a secure connection between the client and the server.

Fraudulent websites

With online shopping on the rise, the list of fraudulent websites is getting longer by the day. These fraudulent websites prefer to peddle small and valuable articles such as cameras, watches, jewelry, etc. And for all you know, Tthese websites may be a front for stealing your credit card details.

Like we said before, it's your money and so you are responsible for it. You have to be careful before swiping your credit card online.

Tips for shopping online

Here are a few pointers that will help you before you decide to swipe your credit card online:

See the security certificate of the online store. No security on the site? Dump it and head to a reputed, reliable online store.
People normally use credit cards for online purchases because if they get an unauthorized charge on their credit card, then under federal law their liability is limited to $ 50. Using a credit card is safer than other ways of online payment.
Find out more about the seller. Check up on his references. Hunt the blogs for reviews if you're visiting an online store for the first time.
Read the legal terms and disclaimers. They are sure to be featured on any online store. If you aren't comfortable with these terms, don't shop on the site.
Scan the product highlights and know more about what you are buying. Compare prices with other online stores and read the product's reviews.
According to a Federal Trade Commission rule, a product must be shipped within a certain period of time (default period is 30 days). If the seller cannot ship you the product within the maximum time frame allowed, then you must get the option of canceling your purchase and getting a refund.
You must keep printed records not only of your purchases but also of other details such as sellers contact address and number, a printout of the web page where you had shopped, a printout of legal terms and privacy policy, email messages, etc.

By taking the right precautions before swiping your credit card online, not only do you safeguard your hard-earned money, you make online shopping a more fulfilling and rewarding experience.

Why opt for Secured Credit Cards?
Are the features of unsecured credit cards good or bad?
Credit Card Fraud! Be careful of your credit

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