How to Safeguard Your Credit, Privacy and Accounts While Holiday Shopping

After a tough couple of years, Americans are loosening the grips on their wallets and planning to do a bit more shopping this holiday season.

The National Retail Federation predicts the average U.S. shopper will spend $689 over the holidays, up slightly from $682 in 2009.

Many of us will hop on the Internet to comparison shop and score bargains. But plenty of people will head to the malls and other brick-and-mortar stores to purchase holiday gifts, decorations, toys and more. Here are some helpful tips to safeguard your credit, your privacy as well as your bank accounts whether you’re shopping over the Internet or in person.

For Online Shoppers

While Black Friday – the day after Thanksgiving – has traditionally kicked off the official holiday shopping season, savvy consumers are increasingly interested in Cyber Monday deals that can typically be found only online.

So if you’re like me and you dread the thought of getting up early for in-store deals or battling massive hordes of shoppers, use these guidelines to shop safely and easily from the convenience of your home.

Only Use Secure Sites

The number one rule of safe online shopping – during the holidays or any other time of the year – is to only use secure websites. These are highly safe sites because they utilize encryption technology, which scrambles your credit card number and other personal information, making it nearly impossible for thieves and hackers to steal your data.

You’ll know a site is secure if it has any of these three things:

*a website or order page that says https://. The letter ‘s’ is your clue that the site uses encryption;

*a closed padlock at the bottom of the page. Don’t place any orders on sites where there’s an open padlock; or

*an unbroken key, which also signals safety measures are in place.

Stick With Reputable Sellers

When buying online, it’s best to patronize merchants and retailers you know, or those you’ve done business with before. If you plan to purchase something from an individual or a company that you’re not familiar with, be sure to first check out consumer reviews about the merchant. You can also check out companies from the Better Business Bureau.

Pay the Right Way

Never sends personal checks or money orders for merchandise you buy online. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered.

Guard Your Passwords

Many websites require you to set up an account or create passwords in order to complete online transactions. Be sure to keep passwords private and not divulge them to others. Also, don’t create easy-to-crack passwords, such as those with birthdates.

Read the Privacy Policy

To decrease the chances of winding up on someone’s spam list, or getting unwanted junk emails, always find and read the privacy policy for an online retailer you’re patronizing. Usually the privacy policy is on a website’s home page or in a section called “Legal.” The privacy policy will tell you what information the seller plans to collect from you, and how that information might be used, and how you can stop data about you from being distributed to third parties. Don’t ever give up private information like your social security number to anyone online. And ideally, you’d want to see a seal from a privacy enforcement organization, such as BBBOnLine or TRUSTe.

Complain if Necessary

If something goes wrong with an online purchase – say, your order doesn’t arrive or you get double billed – don’t hesitate to complain to the seller. If your complaints are not satisfactorily handled, you can also register complaints with the Better Business Bureau (http://www.bbbonline.org), the Federal Trade Commission (http://www.ftc.gov or 877-FTC-HELP) or the State Attorney General in either your state or the seller’s state (http://www.naag.org).

For In-Store Shoppers

Those of you shopping in retail stores should follow these tips:

Know the Return Policy

You should know a retailer’s return policies before spending money in a particular store. In addition to getting the low-down on how many days you have to make a return, or what items are and aren’t exchangeable or refundable, pay close attention to return policies that are specifically tied to your use of credit cards. For example, some stores may demand that you show the same credit card used during a purchase if you want to make a return. Others will only give you store credit, or credit back on your credit card, as opposed to cash refunds. Whatever the details, make sure you understand everything upfront before buying anything.

Keep Those Receipts

In the hustle and bustle of holiday shopping, it’s easy to lose track of how much money you spent and where. To minimize your risk of being over-charged and to protect your credit information, destroy carbon copies you might get from retailers, but keep the receipts. Later, check those receipts against the charges shown on your credit card statements to make sure everything is correct.

Limit What You Carry

Don’t carry your entire collection of credit cards, your checkbook and a wad of cash with you all in the same wallet. If a pickpocket targets you or you lose your wallet, you could lose all of it. Instead, leave some things at home and carry only what you need. And remember, never carry your Social Security card in your wallet.

Protect Your Cards

Lastly, you can protect your credit cards in several ways while shopping in stores. Start by only carrying one or two cards with you. Also, always double-check to make sure that cashiers return your credit cards after you’ve made a purchase. And finally, create a list of all your credit card account numbers and the numbers to call if they’re lost or stolen. Put this list away at home for safe-keeping.

By following these steps, you’ll have peace of mind this holiday season, knowing that your personal information, credit and privacy are all being properly guarded while you’re shopping online and in person.