Knowledge of Internet Credit Card Security Keeps Your Money Safe

How Does an Internet Credit Card Transaction Work?

More and more Americans are doing large parts of their shopping and purchasing subscriptions for services over the internet. While the internet was originally used almost exclusively for the exchange of information, it has become an essential part of the free market system. For this reason, elaborate systems of secure payment have been developed to make the internet a safer method of shopping. Credit card companies, payment gateway providers, and the merchant they service have all worked together to increase people's confidence in online markets. This is not a selfless enterprise. They know as well as you and I that more consumer confidence means more sales means more profits. The question is whether or not they have done a good job of it.

When a credit card is used on a webpage, the numbers, verification codes, and user information are sent to the merchant website server. From there, the information is sent to a company called a payment gateway provider. They process the transaction and send instructions to the credit card companies and banks to ensure that the money is properly transferred.

How Secure Are These Transactions?

Once the information reaches the payment gateway, the process is incredibly secure. Complex, corporate-level encryption softwares and numerous layers of security and authentication ensure that no money gets misplaced. The places where most security holes emerge are on the merchant's computer. The computers that collect information from you and then send them to the gateway service use one main security system. This system was developed by Netscape in 1996 under the name SSL 3.0 and has since been remade into a similar system called TLS 1.0. The system is a simple encryption cipher, but it is virtually impossible to crack without the key (stored on the destination computer). When SSL first began being used for internet credit transactions, all three major card providers, Visa, MasterCard, and American Express, officially recognized its value and effectiveness.

The Key to Keeping Your Money Safe: Watch the Merchants

The fact is, it is practically impossible for anyone but the banks to see your information after the gateway has received it. The systems are not perfect of course, but they would be so difficult to get around that it wouldn't be worth anyone's time to do so. The only place you could really have any problems keeping your information safe would be at the point of the merchant you are giving your card data to. If the company who runs the website is one that you have never heard of, it is best to do a little bit of research before you buy from them. Also, if a company has only recently begun selling its products and services via the internet, it may be best to hold off for a while until they have perfected their security systems.

There are other things that you can do to keep your money safe even in case of credit card fraud. For example, you should keep records of all internet transactions. All receipts, invoices, and confirmation pages and emails should be printed and kept for future reference. If you are ever the victim of fraud, these documents will go a long way in helping you get your money replaced.

Another way you can ensure the safety of your purchases is to take a look at the site's security. Most web browsers have methods of letting you know which pages are secure and which are not. Refer to the documentation for your browser and find out which pages on the site are using SSL or TLS. If, for example, the credit information page is secure and the login page is not, then the site is actually not secure. Login information can be intercepted, making the credit information page irrelevant. Make sure the site is properly secured.

A Unique Scam You Should Look Out For: Phishing

On a cool spring day last year, a young college student accessed a website where athletic equipment was sold at near wholesale prices. He needed a new set of arrows for his archery class and decided to order them online to save money. The site came up, he added the items to his electronic shopping cart, and he clicked the check out icon. A credit card payment information form was called onto the screen and he entered his MasterCard student credit card number, verification pin, and expiration date. He clicked submit, and he was redirected to a receipt page that he printed for his own records. Several weeks passed by, and he had not yet received the products that he had paid for at the website. He called the customer support office of the company who owned the website, and the operator told him that they had no record of the purchase. He called his bank, and they confirmed that they had received the charge and transferred the money.

This young man was a victim of a phishing scam. Phishing is a highly illegal activity and should be reported immediately. What the man did not realize is that he had mistyped one or two letters of the website address. A scammer had registered the misspelled address and constructed a site that looked almost exactly like the genuine site. It took his credit card information, made the transaction, and the information never actually reached the company.

To avoid phishing, all you have to do is make sure that the address of any sensitive pages is correct. Take the extra few seconds and check the address and its spelling. If you have been, or think you may have been, a victim of phishing you should order your free credit report to see if your credit score has been adversely affected by your victimization. If it has, have it corrected. You don't want to find yourself in the position where all you can get is a secured prepaid credit card, which is a card for damaged credit rating. Make sure you keep your financial condition in good shape so you can have the benefits card of your choice, whether it be a cash back credit card , or a small business credit card .

The Last Word

When it comes down to it, all things considered, the systems in place for processing credit information over the internet are very secure, and the few difficulties that can be had with them are preventable. If you take the few extra minutes to make sure your information is being treated responsibly, the internet can be a convenient and vast market accessible from the comfort of your home. Please visit our balance transfer credit card section for additional information.

About The Author:

Don Willoughby is a successful author and regular contributor to http://www.e-credit-card-service.net. His websites provide research and applications for different types of low interest rate credit cards .