You have an internet connection, just enter online shopping. Books, bags, compact discs, garments, gadgets, anything you can buy online.

In every office people are using computers, even the households are acquiring personal computers and laptops, just few clicks of mouse is all to get that book on the bestseller list delivered to your doorstep.

Is it safe to use a credit card online?

According to K. Vaitheeswaran, Chief Operating Officer of, a popular shopping website indiaplaza, it is much safer to use a credit card online than to use it physically in a store or a restaurant. He said “When you use your card physically, its details can easily be taken down by the person handling it. But when you use it online, the system is routed through a bank. This way it is far safer and the details of the card do not get compromised.”

The website is having a wide range of products for sale, ranging from air tickets to wine and has had over a million customers over the eight years of its existence.

According to the available statistics from the Internet and Mobile Association of India website show that about 77 per cent of shoppers in the country have shopped online more than twice.

If we see the percentage of the shoppers who have bought products online more than 10 times, it accounts to 53 per cent and they are from the 26 to 35 age group.

Now days there have been increase in the online booking of cinema tickets.

According to the data provided by Communications Manager of Sathyam Cinemas B. Supriya, about 750 to 1,000 bookings are made online everyday.

She said only credit cards are accepted for the payment of the tickets and the Sathyam website is secured by Verisign, a well known internet security providing service for payment processing.

“We also give customers the option of choosing their food online which is then delivered to their seats,” she added.

V. Sriram, a photographer who books movie tickets online said, “It is very convenient to book online. It saves the hassle of queues and you can check the availability of tickets of all the movies.”

According to the IAMAI website Chennai alone accounts for six per cent of movie tickets purchased online in the country; following it are Kolkata and Ahmedabad.

Previously online shopping was not very popular as there were not many sites, the lack of knowledge about online shopping and the security problem. Over the last two years online shopping has also picked up pace as the services have improved and convenience many websites offer.

For example Rediff.com, delivers the product to your home and only then payment is to be made. Then there are other services offered by websites such as online auctions, special offers for the day and second-hand dealing.

It is convenient to pay through credit card but if you do not have one then you can make payment through cheques. Some websites accept cheques as well.

When you have purchased a product, a unique order number is given which can be used to track the progress of the delivery.

As all websites use a secured payment gateway, more and more users are turning to the Internet instead of going all the way to the nearest mall for all their shopping needs.

Chairman O.P. Bhatt speaking at the conference said, “We are examining this product in our mutual fund company and we are hopeful we should be able to come out with an ETF next year.”

He informed that currently the bank is distributing gold coin through its 100 branches and plans to widen its network to 1000 branches. The bank is planning to open its bullion branch at Zaveri Bazar in Mumbai, the hub of India’s gold trade.

Use a fake ID
Now day’s credit cards come with a measure of protection against fraud, making them a great online shopping tool. If there’s a fraudulent charge to your card, federal law limits the amount you owe to $50. Many credit card issuers go further, with “zero liability” policies.

Some cards offer an extra measure of Internet security, letting you adopt an alias for online purchases. They will provide you an alternative number generated for a single online purchase or for use with a single retailer against your real credit card number.

These fake IDs allow you to shop online without ever revealing your real credit card number, so you don’t have to shut down your entire account if the fake number gets into the wrong hands. Some programs also allow you to put spending limits on transactions using these aliases. Banks have their own methods and programs for their customers.

Bank of America has a program called ShopSafe for its customers. It’s available to customers who have a Bank of America credit card and use the company’s online banking service. Citibank lets customers who hold certain credit cards generate so-called virtual account numbers for use online. Discover Card calls their fake IDs “secure online numbers.”

Check with your credit card issuer to see whether it has a similar program. If not, and if you’re a frequent online shopper, consider whether it’s worth the hassle to switch to a card with this cloaking device.

Put on your secret decoder ring

Cards that carry either the Visa or MasterCard logo may be eligible for a security program that both companies offer in similar forms. The security features allow users to set up a special PIN for Internet shopping. Once you’ve signed up, you’ll be prompted to enter the secret code when you purchase items online.

Assuming no one else can get their hands on the code (don’t write it on the card or keep it in your wallet!), this can block some unauthorized attempts by hackers who try to shop using your good name and credit. Not all online retailers require the code, which limits its protections. Check with your financial institution to see whether the card you carry qualifies.

Use a go-between
If you’re purchasing far and wide on the Internet, you may consider using an electronic payment system that handles all your purchases. It can theoretically reduce your exposure online by reducing the number of retailers that have access to your financial information.

The merchants like eBay’s PayPal or Google’s Checkout allow their customers to use an electronic payment system. You might not be able to use these systems at all your holiday shopping destinations.

Put on your invisibility cloak
The first thing to be safe you must keep your computer safe by installing antivirus and anti spyware software so that your financial information secret cannot be hacked by the hackers. Other wise going through all this trouble to hide your identity online won’t help if your computer is riddled with viruses sending your private information out to hackers worldwide.

Recently, a man who worked in the credit card division of a private bank duped several banks of almost 100 credit cards. In the latest instance, Raghu (18), a member of the vehicle seizure team of a private bank, quit his job and started stealing bikes.

Raghu had learned to break the handle lock of bikes while seizing two-wheelers belonging to people who did not repay their loans; along with his friend, Rajanna (19).

But their luck was not in favor and they were soon arrested. Police said the duo, who hails from Mandya, targeted motorcycles parked in front of houses in Jayanagar 4th Block, 9th Block, 4th T Block and Hanumantha nagar.

Raghu would free locked motorbike handles by applying power while turning the handle. He told the police that many boys who have worked in seizure teams are engaged in vehicle theft. “In case anyone questions them, the boys flash their bank ID card, saying the vehicle is being seized,” Raghu said.

“Deposits have already been taken for both India and South Africa with both expected to commence operations early in 2008,” Bartercard Plc Executive Chairman Wayne Sharpe said in a statement to announce the company’s 15-month financial results.

According to Bartercard, India is the largest market yet to be entered by the group that is already present across 12 countries. Unlike credit or debit cards, Bartercard needed to be recharged with customers’ own goods and services, and not cash.

But except for the involvement of cash, a Bartercard transaction is similar to those through a credit or debit card. Members will receive a plastic card and an interest-free line of credit. Trade points (in terms of the currency) will be credited to member’s account upon the sale of goods and services through the exchange.

Members will be able to use their Bartercard transaction card to spend their credit balance or draw on interest-free line of credit, on goods and services from any other member.

Bartercard is the world’s largest barter exchange and would provide business opportunities for companies who barter their goods and services.

In India barter trade market largely comprises of smaller firms with exceptions like Net4Barter, which has a client base of about 1,000 companies.

There are printed details on the credit cards about which you must have clear idea. By reading and understanding the fine print of your statement, you will be practicing proper credit card management. It will also help you learn how your credit card program works.

A small list of things you should be looking at

Credit Limit: Credit limit is the maximum amount your credit card allows you to borrow, whether as credit against goods purchased or/and cash withdrawn. The card issuing bank can revise credit limit based on your payment track-record. Available Credit Limit: It is the difference between your credit limit and total amount due. If your credit limit is Rs 50,000 and you have spent Rs 1,500, your available credit limit reduces to Rs 48,500.

Cash Limit: Cash limit sets the maximum money you can withdraw as cash using your credit card. And if you exhaust it, you will not be able to withdraw more cash even though you still have balance in your overall limit.

Statement Date: This is the date on which your bill is generated. This is also the date used to calculate interest rate if you do not pay the full outstanding amount by the payment due date, even though the due date may fall many weeks after the statement date.

Payment Due Date: This is the date before which your payment (cheque or demand draft) should get credited to the bank otherwise interest rate will be charged on this. To be more specific, this is the last date by which your payment has to be recorded in your bank’s computer.

Total Amount Due: This is the total bill amount to be paid – the total unpaid accumulated amount outstanding in your account, including interest and any other charges like late payment fee.

Minimum Amount Due: This is the amount which should be there in your account in a good credit standing. This amount is usually 5 per cent to 20 per cent of your total amount due.

Rewards Point Summary: It gives an account of your opening balance and the points or credits earned or redeemed. You should not confuse reward points with credit limit or balance outstanding. Reward points and the method of redemption vary from one credit card to another.

Transaction Details: The transaction details will have the date of transaction, place of transaction (where you spend the money) and the transaction amount. This helps you know about the charges that will be charged on the transactions you will do.

Kishore Biyani’s Future Capital Holdings (FCH) is awaiting approval from Sebi on its proposed initial public offering; the company has got the nod from RBI for its credit card venture.

The Future Card, a credit-cum-loyalty card which will offer customers a slew of discounts and benefits across Future Group stores.

Customers will receive four loyalty points for every Rs 100 spent at Future group’s retail stores, including Pantaloons, Central, Big Bazaar and Food Bazaar and one loyalty point for every Rs 200 spent outside the group’s retail stores.

Apart from credit cards, FCH plans to offer home equity loans, money transfer services and distribute mutual funds, life and general insurance products. The financial services retail offerings will be housed under Future Money and the management may look at the possibility of hiving this off into a separate entity. At present, Future Money, through its 60-odd outlets, provides consumer durables, furniture and personal loans.

FCH will give the 5 lakh-plus existing holders of ICICI Bank Big Bazaar card the option to migrate to Future Card.

According to the agreement between ICICI Bank and FCH, the bank will determine the terms and conditions of the Future Card and will be responsible for collection and recovery of all charges and fees due from card customers while FCH will be responsible for marketing and distributing the credit card and for collecting applications from customers.

FCH will receive from ICICI Bank an acquisition fee of Rs 600 for every new credit card issued, with a provision for an annual escalation, and also receive incentive commissions based on a percentage of customer spends which are 0.7% for spends within Future Group formats and 0.2% for spends in other outlets.

The American Express Kingfisher First Credit Card members will be able to earn free flights up to 4 times faster than any other leading card in the industry while providing them the premium flying experience from Kingfisher Airlines, making it the fastest and the finest way to fly free.

The American Express Kingfisher First Credit Card will allow the card members to get 2 or more round trip flights with Kingfisher Airlines every year, simply through their everyday spend on the card. This card also offers the world’s leading membership rewards program with an industry best earn rate of 10 times reward points. What this means is that a customer can earn tickets faster by simply charging their spend on telecom services provided by Airtel, spend Kingfisher Airlines and with over 500 retail and dinning `Platinum Partners.` The card also offers exclusive Platinum privileges such as Kingfisher Airlines King Club Gold Tier membership and special benefits from Airtel. In the first year itself, the card will offer an outstanding premium value of more than Rs 50,000.

The American Express Kingfisher First Credit Card main target is the rapidly growing segment of young, successful and affluent people who enjoy traveling and like to be rewarded for their everyday spend.

Rob Hennin, vice president and country manager, American Express India said, “Indian consumers are traveling more than ever before, and more importantly, are developing a taste for and demanding, premium products and service. In 2006, leisure travel in India totaled USD 350-4001 million and air travel increased by 45%1 over the previous year. We`re confident that the American Express Kingfisher First Credit Card will provide the perfect solution for affluent consumers in meeting their travel and spending needs.“

PCI is a global standard that applies to any company that processes, transmits or stores credit card information. The standard was created by credit card companies to help organizations prevent security breaches. Any company that processes credit card data today could be at risk for cyber-crime attacks, resulting in customer identity theft.

IBM is all set to differentiate its product in the market by designing a comprehensive program to take companies through the entire PCI compliance process, from assessment to compliance to certification. As a result, the company helps them to meet all 12 PCI requirements for safeguarding customer payment card data.

Those companies that do not achieve PCI compliance could have their ability to process credit cards revoked, or could even face increased processing costs. Considering the far-reaching impacts security threats can have on organizations, non-compliant companies risk significant financial and customer losses and damaging effects on brand reputation.

Hughes, is a global provider of broadband satellite networks and services, and has selected IBM to take its Hughes Net broadband network service through the PCI compliance process.

Mike Cook, senior vice president, Hughes, said in his statement that “As a leading managed services provider to major enterprises, Hughes strives to provide a wide range of services and applications to our customers.”

Hughes continued: “PCI DSS compliance is critical to our customers’ operations, and it is imperative that the network services we provide meet those requirements. IBM’s comprehensive program took us successfully through the entire process, from assessment through to certification.”

Although the threats of fines and a recent influx of high-profile data breaches have impacted the industry, the rate of PCI compliance is estimated to be less than 50 percent. According to the reports of industry analyst firm Gartner, Inc., Visa USA indicates that as of July of this year, 39 percent of level-one merchants and 33 percent of level-two merchants are compliant with the PCI Data Security Standard.

Kristin Lovejoy, director of strategy for Governance and Risk Management at IBM, stated,”As many merchants have learned in recent years, meeting some or even most of the mandated PCI requirements is no longer sufficient.”

Lovejoy added: “As a global leader in security technology and consulting services, IBM has the knowledge and expertise to provide a comprehensive solution for helping merchants comply with the PCI standard.”

In the business of processing credit cards, it is more than ensuring that the customer information is current and the amount charged is accurate. With identity theft gaining an increase record, consumers are concerned with the inherent risk in providing companies with any information. As this concern intensifies, PCI compliance will become more than just an afterthought – consumers will demand it.

IBM is expecting this shift in the market and the demand for solutions that will make compliance quick and easy. As a result, the company is effectively taking a proactive approach to the anticipated demand in the industry, helping to create long-term opportunities for its solution.

With the festive season kicking on the banks and credit card companies come up with myriad promotional offers including the ‘ubiquitous’ cash backs. If the consumers do smart shuffling of their debit and credit card then they could actually save quite a sum.
Many of us do not know how to smartly use cash backs. Here are some tips:

▪ Check if the offer is valid across all categories

▪ Check if it’s applicable for your card

▪ Read the conditions — they are quite different for various cards

▪ Register for cash backs. Some banks offer cash back as an optional facility

▪ See if there are any ceilings for cash backs to avoid surprises later

▪ Keep an eye on the validity of the offers

▪ All things remaining same, use credit card instead of debit card as the former gives free credit

Actually what are cash backs?

Cash backs refer to the process of banks and credit card companies offering you cash back — based on the amount spent through the credit or debit card. For instance, there could be a 5% cash back, which means Rs 5 would be credited back to your card for every Rs 100 spent.

The catch, though, is that there are often ‘conditions’ to be met. For instance, there could be a ceiling on cash back amounts, limitations on its usage (like some specify it is applicable only where the card-issuing bank has installed terminals), time limitations, and line of products where it is applicable and so on.

Take for instance the HDFC Bank’s recent advertised, it says, “You can feel 5% less guilty.” It means, if you shop by swiping your HDFC Bank debit card, you can enjoy up to 5% cash back on your ‘highest’ transaction. The key word here is the highest.

Then the cash back is different for every month.
If you do transaction in all three months (October, November and December), you will be eligible for 5% cash back. If you are transacting in any 2 months, the cash back is capped at 3% and 1% for any one month. The offer is valid till December, it mentions.

Then there are few things you must look for. Most of the times you will see banks advertising their cash back schemes on billboards, magazines or newspapers. These offers should be crosschecked that if the same offer is available on the card you hold. If it’s applicable then what are its other terms and conditions are. If you read the HDFC Bank’s advertisement on bank’s brochure or on the website, it clearly states, the cash back offer is only valid on debit card transactions above Rs 1,000.

Secondly, maximum cash back is limited to Rs 250 per month. So even if your highest debit card spends is above Rs 5,000, you can get only the stipulated amount. The cash back will be credit at the end of the period i.e. December. Lastly this offer is not valid on cash withdrawals from ATMs through debit cards.

Always keep an eye on the validity of the offers as these offers are for limited time period that is Banks kick off these cash back offers only in the festive season, which starts from October and goes on till December end.

Many banks offer this privilege to only selected card-holder categories. Similarly some banks offer cash back as an optional facility for customers. In such cases you have to call the phone banking or fill an online form to sign up for this offer.

One more thing to watch out would be if the offer applies at all outlets having point-of-sale terminals of different banks. Some banks insist the purchases should be made only where the card-issuing bank has installed such terminals.
Similarly you should see if the offer is valid across all products categories.

Lastly, check the offer period, the minimum and maximum limits on which cash backs are available. Spending isn’t necessarily a bad thing if it could bring smiles to your near and dear ones. Ensure that the bunch of plastic that usually fills your wallet is smartly shuffled and used to cut your shopping bills this season.