The internet makes holiday shopping so easy—no fighting for parking spaces at jam-packed malls, no waiting in endless lines to get to the register.
But even if you consider yourself a pro, shopping online isn’t without risks. These tips can help you protect yourself and your finances as you hunt for that perfect gift:
1. Use a credit card rather than a debit card. Credit card payments can be withheld if there’s a dispute with a store, and if the card is stolen, you won’t have to pay more than $50 of fraudulent charges. But with a debit card, you can’t withhold payments—the store is paid directly from your bank account. And if your card is stolen, you could be liable for up to $500, depending on when you report it.
2. Find out if the public WiFi hotspot you’re using at a coffee shop or bookstore is secure. If it’s not, your payment information could be compromised over the network.
3. It’s risky not to read the terms of service agreement before you buy online. You could inadvertently sign up for subscriptions or get hit with additional fees or restrictions. Terms of service are often in small print or presented right when you are anxious to purchase.
4. Be careful if you’re buying event tickets online as gifts. Some venues may practice restricted ticketing, requiring the same credit card used in the online purchase to be shown to get into the event.
5. Use caution buying digital assets like books and music—they can’t be given away as gifts if they’ve been downloaded to your account. You should either purchase a gift card for the book or music site, or check with the company. Some services have ways to “gift an item” but it varies depending on the provider.
For more advice on safe online shopping and being a savvy consumer this holiday season and all year long, check out the Consumer Action Handbook–the free government guide to protecting your money.
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Whether you plan to do all your holiday shopping online or you’re going brave the crowds at the malls, the Federal Trade Commission offers shopping tips to protect you from fraud, over-paying at the cash register and more.
Find tips to help you research a purchase, shop safely, and understand contracts and warranties.