Buying Online!

The Budget Doctor’s Advice on Shopping on the Internet

We used to talk about things that existed in the computer world as being virtual or somehow not real. Today it is the Internet that is real and most other things barely exist! Yes, there are still bookstores, but most people use them to buy coffee and access free Wi-Fi. “Books” as we used to call them, are now downloads into electronic machines. And there are some things, like airplane tickets, that are difficult to purchase if you don’t go online and there are many retail outlets that only exist online. There are even banks that don’t have branches.

So it would appear that we are all destined to become online shoppers, but there is always a downside. The Internet probably has more fraudulent sites and scams than good deals. Putting your private information online is an invitation to identity theft.

If we must shop on line, we at least need to be aware of the risks and we need to take reasonable steps to protect ourselves.

Here are the rules for shopping online:

1. Compare prices carefully.
Not only do most sites add shipping and handling charges, these often add $25 or more for an order that probably costs $2 to ship. Search for coupons and codes that offer free shipping (there are many) and buy from a reputable site with the lowest total cost.

2. Buy from sites you recognize.
If you haven’t heard of a site, there is an excellent chance it is a scam or a start up that may or may not deliver. Research it carefully or don’t use it.

3. Avoid using debit or credit cards.
PayPal and other payment systems are far from perfect, but they offer some protection. Another option is a prepaid Visa, MasterCard or American Express card. Once registered, these cards can be used like credit cards and only the amount on the card is at risk. These can be purchased for face value plus around $5 at discount stores and banks. You will likely still be required to register the card in order to use it online which means transactions will be tracked to you.

4. Learn to use the “history” feature on your browser.
Just about every web browser has a feature that lets a user erase the history of places visited and the “cookies” that vendors leave on a computer. After shopping, it is important to erase as much as possible, although some tracking devices may be hidden and still remain.

5. Check your credit report at least once every six months.
Since buying online means posting a lot of personal information, it is important to look at your credit report at www.annualcreditreport.com to be sure that no one has stolen your identity.

Understand that even if you erase everything and check your credit report regularly, you are still at risk. Huge companies exist just to track every thing you do and sell that information to others. No matter how careful you are, people will be able to find out where you shopped, what you bought, how much you spent and how you paid. That is the cost of living in a wired world.

It is unfortunate that such an attractive resource as the Internet is also such a dangerous place but even fancy malls have muggers lurking in the parking lot so grab your helmet and log on. It is going to be rough out there but nobody said shopping was for sissies.