Protecting your credit card in cyberspace

"There's no doubt that online shopping has its fair share of risks," says Choice spokeswoman Elise Davidson.

"It's hard to know when a company is trustworthy.

"You could pay for goods that never arrive and who knows what happens to the personal information you provide?"

"By checking an online shop's terms and conditions, privacy policy, complaints procedures and whether it has a secure checkout, you can minimise the risks of online shopping."

According to Davidson, before handing over credit-card details, consumers should do a thorough search for the company's name and "complaints", and check the Australian Securities and Investments Commission website at www.asic.gov.au for problems with the company.

And look for a business street address, phone number and Australian Business Number before making a purchase because if there are any problems, "the more information you have, the better off you'll be", she says.

Choice also warns of differing consumer laws in other countries, so if you buy from an international website and encounter difficulties, you may have to contact the consumer affairs organisation in that country.

It's also good practice to always check credit-card statements carefully. Only shop at websites that use a secure payment facility and never tell anyone your password or PIN.

Davidson says some consumers keep a separate credit card with a lower balance for shopping online, limiting any unauthorised spending that could take place.

The Australian Competition and Consumer Commission says that when people buy goods online from an Australian-based trader, their consumer rights are the same as if they made the purchase in a traditional shop.

The ACCC says people who shop online should print out any forms they have filled in and keep copies of any emails as a record of the offer they have accepted, so if there are any problems, they can prove the terms of the contract entered into with the business.

Source News.Com.Au