Credit Card Caution

[Yampa Bob]

Many modelers, including myself, use a credit card to pay for internet purchases of trains, so I consider this to be on topic.  I have recently encountered problems with card billing companies (banks) . This may or may not be associated with recent banking problems.  Therefore I offer several cautions and solutions.

1.  Billing companies are  required to mail statements not later than the 26th of the month.  Recently we have not been receiving statements until the 8th or 9th of the next month, with  payment due by the 10th, so it is impossible to get the payment to the company on time. 

2.  There is no postmark date on the envelope, so we have no proof that statement was mailed late by the company.  I called the card company and was told they have no control over the mail, since the statement comes from a separate billing company (holding bank).

3.  The last statement we were charged $39.00 late fee plus interest, even though the balance was less then $80.00.  Apparently this exorbitant fee is allowed by law.  We always pay the full balance each month so we never owe, nor have we ever paid, any interest.  It is my suspicion that some banks might be deliberately sending statements late to justify the late fee, or simply have too many accounts to meet their deadline.  Those with high unpaid  balances probably don't even notice the added fee.

4.   For security reasons, we have requested that the complete card number not be shown on statement.  All companies we buy from enter only the last  4 numbers, such as XXXX XXXX XXXX 9999.  The card company has refused to do likewise. Credit card theft is rampant, anyone intercepting your statement has your card number. Never discard your statement in the trash without shredding your card number.

5.  If your card company calls, offering theft protection at $9.95 a month, beware.  You will be charged the fee and never receive the protective software they promise to send you.  The software is claimed to encrypt your keyboard strokes.

6.  Don't be mislead by "Secure Site" encryption.   There are subtle spywares that can reside on your computer, that are virtually undetected by so called "Spyware Protection  Programs".  This spyware will detect your keystrokes and grab your card number.  I only give my card information on the phone to select companies and individuals I trust, never online.  No, I don't have "PayPal" and want no part of it. 

7.  If you repeatedly receive statements late, or  are being charged unwarranted extra fees, call the Comptroller of the Currency in Houston, Texas. They take any complaint very seriously, and will immediately send you a complaint form.  I sent in a complaint regarding one bank's billing practices, and the Comptroller is investigating the matter.

Also, if you receive an email (or phone recording) from an unknown and phoney (probably overseas) company offering huge discounts on trains, with a supposedly toll free number, usually with a 908, 808 or some other weird number, don't call it.  You might get a phone bill for $25,000.00.  It's perfectly legal and you have to pay the bill.

[richG]

I only use a debit card from my local bank for all online purchases. The card works on the road when I go to Florida. I gave up on credit cards eight years ago. I watch my checking/debit account online every day.. May be a solution for some people.
Probably not a solution for most people, but I use a Linux operating system. Very secure. Firewall on the router/modem. Email has virus check and I delete any I do not recognize. I treat ALL email as suspicious. Most spam goes right into the bulk folder and gets deleted automatically.
The Internet is the Wild Wild West. Many people are clueless about the 'Net and the possible pitfalls.

Rich

[jayl1]

Bob,

Call the card company & request credit for the late fee.  They may refund/credit it.

Also - don't forget the phishing scams - Dear XXXBank (or credit card)  Customer - your account is compromised & we need you to click on this link to verify information.  Seems like I get one of these every week along with "barrister" Joe Umgamamamama who has 35 million dollars to split with me.  As Rich said, hit the delete button.

Jay

who is still waiting for my 3.5 milliion dollar payoff from a French  - or was it British - lottery.  I know I won because I received an email from the administrator of the lottery

[Yampa Bob]

Jay
I did call the card company and got a credit for the late fee, but this is happening more often and I get tired of calling them.  This time I'll let the Comproller handle it.

You can now buy debit cards right in the grocery store.  It's like a money order, you pay for a set amount in order to make a purchase.   If someone else tries to use the number, it will be rejected for insufficient funds.  If there is a little left over on the card, just redeem it for cash.

I get a few phishing mails, they want you to visit a site and type in your bank account number for verification with their records.  Some people actually do it!

[jayl1]

Hopefully the information provided by Bob, Rich & myself will help the "younger folk" avoid the hassles.  There are many "newbies" on this board - many who probably have never heard of some scams.  Obviously some people fall for them - especially the "PayPal account blocked/illegial useage" one.

[James in FL]

If you suspect Internet crime contact your local law enforcement, or the FBI.

http://www.fbi.gov/cyberinvest/cyberhome.htm

; )

[Yampa Bob]

Thanks for supporting and commenting on this thread. I hesitated to post it, but hoped to save others from problems.  The scams do not discriminate, many elderly people are often easy prey.

Also remember there are "spiders" that crawl the net looking for the "@" sign.  If you need to advise a member of your email address, write it in your post with a little twist, such as:  bob/member/server.net   Knowledgeable members can decipher the address, the spider probably won't. Edit to remove the string once contact is established.  

[Jim Banner]

I use a credit card online quite frequently.  But only with companies I know and trust.  For companies/individuals that I do not know, I use PayPal.

I have heard all the horror stories about PayPal freezing bank accounts and credit cards.  But there are two tricks for dealing with PayPal.  Pay them from a separate credit card account, one not linked to your regular credit card.  If you are not a seller, do NOT link your PayPal account to your bank account.  If you ARE a seller, for example on eBay, set up a second, independent bank account, preferably in a different bank, just to use with PayPal.  At that point, you might as well have your online credit card through that second bank as well.  The second trick is to keep a low, locked limit on you online credit card to limit the damage if someone hijacks it.  And keep a low balance in your bank account that is linked to PayPal so that if they do freeze it, you are not suddenly cut off from all, or even the majority, of your funds.   

[Yampa Bob]

The banks have begun a new "game".  With some, if you don't maintain what they consider a minimum balance, say $1500.00, they charge you a penalty fee each month and pay no interest. 

I called my primary suppliers, they will accept the "debit cards" that you can buy at any grocery or convenience store.  If you anticipate a purchase, I would think you could charge the PayPal to the debit card.

This new concept of "pay before you charge" would keep people out of trouble.

[WoundedBear]

Jim.....I swear you are reading my mind. My wife and I use those very same tips to ensure our online transactions remain positive. I did a lot of selling on eBay over the years and never once had trouble. I even had a Paypal debit card until we moved back from the US. I used to transfer funds from the "online" account into paypal and back, and even a few times had paypal just cut a check and mail it.

Here's one for you.....I called Trainworld a while back to try and place an order. They tell me, for some reason, that all first time orders from Canada need a copy of the credit card....front and back....to be sent along with the first order. Like that's gonna happen. Micro-mark gets my business.

People need to educate themselves before venturing into online transactions. But a properly secured machine and a few behind the scenes things like the seperate card and account, and you should never have troubles buying online.

Sid

[RAM]

One rule to go by isif some one calls you or emails you asking for information.  Just hang up or delete.  No bank or credit card company will ask for this information from you by phone or email.

[Yampa Bob]

One Ebay "power seller" no longer gets my business since they wouldn't accept my credit card over the phone or online, only PayPal.  I had to send a check and wait 2 weeks for the check to clear and another week for delivery. I also don't like the fact that they won't refund or replace an out of the box defective Bachmann loco.

This may be off topic, but I now buy from only 2 companies, mostly from Caboose Hobbies.

Now don't laugh, I actually visited one store that wouldn't accept cash. They said for security reasons and pilferage they couldn't keep cash on hand to make change.  Figure that! 

[az2rail]

Hate to tell you this, but starting the first of the year, the only payment method that will be accepted by e-bay will be paypal. Care to guess who owns paypal?

On the subject of phishing. The best rule I have is to check to see if it was accually sent to you, or is the TO spot blank. Another is, is it realy a financal institution that you do business with. Last, don't use the e-mail to link with. If you think there may be a problem, log onto the company's web page. When you log on, you will generaly be told if there is a problem.

Bruce

[Yampa Bob]

Anyone considering PayPal should read this entire document.

http://en.wikipedia.org/wiki/PayPal

Stores either accept my preferred payment method or lose my business.

[pdlethbridge]

I do my banking, all of it, on line. The only time I've had a problem is with paypal, but that got solved. I don't receive statements or bills, it's all on line. I pay my bills on line and if I need statements I can get then on line and that is absolutely trouble free. If I need anything, I order it on line. Much cheaper, safer and faster. If Bob causes me problems on line, I handle it on line, usually just by ignoring him.