Using a Credit Card for Online Shopping

One of the most popular ways to shop online is by using a credit card, and for good reason. Credit cards are one of the most secure and convenient payment options for online shopping, because they offer a level of protection that might not be available for other types of payment. Not all credit cards offer the same benefits when they’re used online, and there are different ways to make your online shopping experience safer and more efficient.

Let’s take a look at some key features you should look for when you’re shopping online, discuss how your online purchases may be protected and go over some tips for using your credit card online.

Why use a credit card for online shopping?

There are a few key advantages to using a credit card for online shopping, including:

Strong fraud protection: If an unauthorized user uses your credit card number without taking your physical card, you generally won’t be held responsible for those charges.

Easier resolution for unauthorized charges: When you report unauthorized charges to your credit card issuer, they generally may be able to resolve the charges more quickly.

No direct link to a checking account: When a scammer uses your credit card, they do not take directly from your checking account, so your checking account balance remains the same.

Features to look for in an online shopping credit card

Today, some credit cards are moving to a digital format, and they may offer increased security for online purchases. In addition to liability protection, online credit card accounts may offer other unique benefits, such as:

Strong fraud monitoring tools or alerts: As is often true with a traditional credit card, your online credit card issuer typically monitors your credit card activity to help prevent fraudulent transactions.

Points or cash back on online purchases: Like conventional credit cards, some online credit cards offer points for certain online purchases in particular spending categories.

Enhanced digital security: Some virtual credit card accounts allow you to generate unique card numbers for increased security in your online transactions.

How credit cards protect online purchases

Credit cards typically offer purchase protection benefits, such as:

Dispute resolution: To dispute a charge on your statement, contact the card issuer to report the disputed charge. The issuer may remove the charge from your bill if they corroborate your claim.

Chargeback rights: While you’re disputing a charge on your credit card, the issuer may not threaten your credit rating, take legal action to collect your disputed amount, close your account or require you to pay your full balance immediately.

Temporary holds or alerts for suspicious activity: Your credit card issuer may lock your card or send you an alert if they notice suspicious activity on your account, which might help prevent fraudulent charges.

Tips for using your credit card safely online

There are some ways that you can use your credit card more safely, like:

Entering card info on trusted websites: If you aren’t familiar with a website and you’re making a transaction, double-check that others trust the website and can vouch for its security.

Using secure connections: Many URLs have been equipped with extra safety measures to protect your data. Before you enter your card information on a website, make sure that the URL begins with “https,” which indicates that the connection is secure.

Setting up purchase alerts: Some credit cards may offer a feature where you can receive an alert when your card has been used for a transaction, which may help to verify that you’re the one using it.

Reviewing statements regularly for suspicious activity: Once you get your statement, review the charges carefully to make sure that you authorized each one.

What to do if your credit card info is compromised

If your card number is stolen online, there are some steps you can take to help prevent more fraud, such as:

Contacting the issuer immediately: Contacting your issuer as soon as you notice a problem may help limit unauthorized transactions and help resolve charges more quickly.

Locking or freezing the card if needed: You may be able to lock or freeze your card from your smartphone via your card issuer’s mobile app or your card issuer’s website, which prevents future transactions from taking place.

Requesting a replacement card: After someone else has discovered your card number, you should request a replacement card with a new number to prevent future unauthorized transactions.

Monitoring for follow-up fraudulent activity: Keep a close eye on your account activity to make sure that there’s no further fraud posted on your account.

Using your credit card online: remain vigilant and contact your issuer

Using your credit card for online purchases may generally be a safe way to make transactions, but if your card information is compromised, there are ways to proceed. Know your rights when you see unusual activity, contact your card issuer if you suspect fraud and only use your credit card for transactions on trusted, secure websites. Ask your credit card issuer about what protections they offer so you can feel better about using your card safely online in the future.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.