How to Keep Your Credit Card Numbers and Other Private Information Safe When Shopping Online

credit cards

Submitting credit card numbers and other sensitive information online shouldn't be cause for cold sweats and sleepless nights. Despite the efforts of identity thieves and other Internet criminals, shopping online is still safe, as long as you stay informed about the tools and tricks Internet crooks use to scam the unaware.

Shopping online using credit cards has become so mainstream that it's hard to remember a time when Internet shopping didn't exist. Shopping online makes perfect sense: it's efficient and convenient, and it makes comparison shopping much easier. Though most online retailers utilize sophisticated systems to keep their servers safe from hackers and other Internet fraudsters, there are still a numbers of best practices consumers should heed to ensure that each and every online shopping experience is as safe as possible.

• If your credit card company offers virtual credit card account numbers, then use them. A virtual credit card number is a temporary, randomly-generated number that's attached to your credit card account. You can use virtual numbers to pay for goods or services online, instead of your real credit card account number. If you generate a virtual account number for use on a particular website, the virtual number will be valid for that website and only that website. If you want to buy 3 items at 3 unique sites, you would generate 3 unique virtual numbers.
  
  Having read the above, you might be thinking that it would be a hassle to generate a virtual number every time you arrive at the checkout page of an online retailer. But considering the peace of mind that using virtual numbers affords you, it's worth it. Credit card companies don't charge a fee for generating virtual numbers, and the process of generating a number is quick and painless.
  
  
• When shopping online, never submit your social security number, your mother's maiden name or any other secret question/secret answer-related information that credit card companies use to verify your identity. A legitimate online retailer will never ask you for your social security number, your mother's maiden name, the name of your first grade teacher or the name of your favorite pet.
  
  
• Purchase an anti-virus software package if you don't have one already, and consider installing an anti-spyware package as well. If you have anti-virus software running on your computer, get into the habit of downloading the latest virus definition files at least 3 times per week, and run a full scan of all your hard drives at least once every week.
  
  Computer viruses, trojan horses, worms and other types of malware can cause all kinds of headaches, but when it comes to serious security threats, it doesn't get much worse than a keystroke logger (also known as a keylogger.) If your PC isn't protected by anti-virus software, you computer could get infected with a particular type of trojan horse called a malicious keylogger, a program that will record all your keystrokes, save them to a file and send the information to a criminal. If you get infected with a malicious keylogger, a huge chunk of your sensitive information, like credit card numbers, your social security number, the usernames and passwords you use around the Internet, etc. could end up in the hands of the crook who orchestrated the attack. Your private information could then be used to steal you identity, or worse.
  
  
•  Never initiate any online shopping by responding to a spam email message. Bottom line: legitimate online retailers don't send out unsolicited mail. Besides, if you respond to a spam email message, you are supporting the spammers, and you don't want to do that!
  
  
• If you want to purchase an item from a website, but you're not 100% confident about the site's trustworthiness, then search Yahoo!, BING and Google to see if you can find any reports of security issues, bad conduct or poor customer support.

Should you be nervous about submitting your credit card information over the Internet? No, you shouldn't. Just remember to use common sense and observe best practices before whipping out that credit card.

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Discover it Credit Card: A Review

Discover it

We've been recommending Discover credit cards for several years now, and for good reason.  Why?:

Discover offers the most value.

Does Discover offer the most value with their credit-card products?  Yes, they do:

•  A long track record of excellent customer satisfaction, year after year after year.  In J. D. Power's most recent credit card satisfaction survey, dated August 23, 2012, Discover was second only to American Express.  You can read the press release here.
  
• Easily the best cash back rewards program in the American credit-card market.  Doesn't matter what tax bracket you're in: everyone has the potential to benefit from a great credit-card rewards program.
  
• Super-competitive introductory rates on both transferred balances and new purchases (value!)

There are 3 versions of the new Discover it™ credit card.  One is aimed at students, the other 2 designed for standard consumers.

1. 1) The Discover it extended balance transfer card offers a 0% introductory rate on transferred balances for 18 months, and a 0% intro rate on new purchases for 6 months.
   
   
2.  2) The alternate Discover it card offers a 0% intro rate on both new purchases and transferred balances for 14 months.
   
   
3.  3) The Discover it for Students card offers a 0% intro rate on new purchases for 6 months.

All 3 cards above also offer:

• Ultra-competitive cash back rewards program.  Right now, and through March 2013, cardholders get 5% cash back @ the movies and restaurants; 1% cash back on all other purchases.
  
  
• No over-your-credit-limit, annual or foreign transaction fees.
  
  
•  Talk to a live, American-based customer support representative at any time.

If you choose to transfer a balance(s) to any Discover it card, the transfer fee would be 3%.

Hopefully, you will have a zero balance once the 0% intro annual percentage rate (APR) periods end with these cards.   If you do have a balance, your goto rate with card 1 and 2 above will be in the range of 10.99% - 20.99%*, depending on your credit profile.  In other words, those with excellent credit will get a goto rate of 10.99%.  Those whose credit needs improvement will get a higher rate.

The goto rate with the Discover it for Students card (card #3 above) is in the range of 12.99%-18.99%*, again, depending on your credit history / credit score.

As with most American credit cards, the APRs associated with these puppies are variable.  The index used to set these rates is the Wall Street Journal (WSJ) Prime Rate. 

The WSJ Prime Rate is currently 3.25%, which is as low as it can go.  Moreover, it is very unlikely that Prime will go up during 2013.

On an aesthetic note: with Discover it for Students, you can choose from a very nice selection of card art.  Images include New York City skyline, flower, mix tape and tropical beach.   I can't post the images here, but you can preview the gallery at the application homepage.

Discover it: Highly recommended. 

* = Disclaimer:

• See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Now" button, you can review the credit card terms and conditions on the issuer's website.
• Discover is a paid advertiser of www.FedPrimeRate.com

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Capital One Bank Behaving Like The Defunct Advanta

Capital One Credit Card

Four years back, I had an Advanta small business credit card.  Interest rate and other terms were reasonable, and it quickly became my #1 business credit card.  In fact, I was so fond of it that I decided to transfer my Bank of America (BofA) business card balance to it, via a 0% balance transfer offer.

Months later, I regretted that transfer.  That's because Advanta decided to breach our agreement, and started charging me interest on the transferred balances many, many months before they were supposed to.

Advanta eventually --more than a year later! --  fixed that breach, but my faith in the company was wiped out.  By the time I was ready to cancel my account, the company was out of business.

Now it seems that Capital One may be trying to emulate Advanta's nonsense.

Many Capital One customers have been complaining that the company has been breaching attractive 0% balance transfer agreements.  According to a current class action in federal court, Capital One would offer 0% intro APR on both transferred balances and new purchases, but would start charging interest on new purchases almost right away.

Here's a clip from the Courthouse News Service:

"...Unbeknownst to plaintiff and classes, however, once a cardholder accepts Cap One's '0% interest' balance transfer offer, Cap One unilaterally, and in breach of the cardholder agreement, eliminates the grace period and begins charging interest on all new purchases from the date of the balance transfer forward.

     'Cap One did not disclose that it would eliminate the grace period for cardholders who accepted Cap One's 0% balance transfer offers and subject them to high interest charges. Cap One did not disclose that the only way for these cardholders to avoid interest charges on new purchases once they accepted the 0% balance transfer offer was to pay the full amount of these purchases plus the full amount of the balance transfer - in the same month that the cardholder accepted the balance transfer, even though the promotional period on the 0% percent offer was for 6 or 12 months...Contrary to the simple 'chance to save' that Cap One represented the balance transfer would provide, and that cardholders paid for, many cardholders who accepted these offers found themselves worse off than they were beforehand.'..."

We at www.FedPrimeRate.com stopped recommending Capital One cards years ago because new accounts would invaribly have very low credit limits associated with them.  The typcial new account would have no more than $500 available for both purchases and tranferred balances.  Not good if, by our records, the typical balance transfer request is around $3,000.

 My advice to Capital One: don't do the Advanta thing.  Stick with what you promise!

We'll keep posting on this story as the case develops.  Stay tuned.

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American Express® Prepaid Card: $25 Gift Card; Limited-Time Offer

For a limited time, American Express will send you a complimentary $25 gift card after you load $200 or more onto a new American Express® Prepaid Card.

If you plan on taking advantage of this deal, please don't procrastinate. This free gift card offer ends on August 31, 2012.

You can find this prepaid debit card at the top of this page.

The American Express Prepaid Card also offers these excellent benefits:

• No fee for direct deposit
  
  
• No overdraft, inactivity, foreign exchange, annual, monthly or purchase fees
  
  
• No fee fraud protection
  
  
• No credit check

We @ www.FedPrimeRate.com are big fans American Express financial products. The company is very well known for providing exceptional value and first-class customer service. Yup.

Enjoy!

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Chase Makes The Best No Fee Balance Transfer Card Even Better

The Slate from Chase credit card has been tweaked. The card still offers a zero percent introductory rate on new purchases and transferred balances for 15 months, with no balance transfer fee. What's new is that you now have up to 60 days to transfer your balance(s) to the card, and pay no transfer fee. In other words, the fee-free transfer window has been extended.

You can the Slate from Chase credit card here.

Enjoy!

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