You’ve
probably heard that the Internet is a dangerous place to use your credit
card. As the Holiday shopping season approaches, you need to know that
this is a myth. It’s time to wake up and see the light.
The reality
is that your credit card is the best way for you to pay for your online
purchases. If you have a problem with your purchase, you will generally
find your credit card company quick to take your side by reversing the
charge. By comparison, if you send a check, you have no convenient way
to get your money back if you have a problem.
It turns
out that Federal law is extremely protective of consumers when it comes
to credit card transactions. For example, if the hacker from your nightmares
actually snatched your credit card number as it traversed cyberspace
(exceedingly unlikely by the way), Federal law limits your liability
to $50. Moreover, most banks waive the $50 because they need your goodwill
more than they need your $50.
The paranoia
that people have regarding credit card use on the Net crosses the line
into the irrational. I don’t understand why people think that it is
okay to call 1-800-Send-Me-Some-Junk, talk to some anonymous person
working for a no-name company, located they don’t know where and blithely
read her a credit card number. That’s a much higher risk transaction
than sending your credit card number over the Internet to ReputableMerchant.com.
Still, people fret about the Net’s dangers.
Now, I’m
not saying that the Net is a perfect place for credit cards. Of course
there are risks, but the risks are reasonable and “reasonable” is the
operative concept.
When it
comes to security issues, if you seek perfection, you’re doomed to fail.
If you required “perfect,” you would never give your credit card to
a waiter who then walks away with your card. For all you know, he could
be in the back room, running your card through enough times to feed
an army. You wouldn’t know until you got your bill.
Still,
it feels “reasonable” to give that waiter your card – and it is reasonable.
It’s likewise reasonable to give your credit card number to a reputable
website over the Net.
While it
is true that a hacker could intercept your credit card number, it’s
an extremely small risk and the law protects you anyway if it happens.
If your merchant uses a secure server, the risk is even lower and is
probably approaching zero. (One way to insure that it’s a secure server
is to look at the address bar in your browser. If it’s a secure server,
the website address will start with “https” instead of “http.”)
Look at
it this way, if you wanted a perfectly safe life, you would probably
never let your kids leave the house. I would submit to you that if you
let your kids walk the streets, you can suck up the courage to send
your credit card number to walmart.com.
Disclaimer: The advice given in the TechLaw column should not be considered
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may not fit the generalizations discussed. Only your attorney can evaluate
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© 2003 Mark Grossman All Rights Reserved