Consumers using some brands of credit cards can get “virtual credit cards,” or single-use card numbers, that can be used at an online store. The randomly generated substitute 16-digit number can also be used to buy goods and services over the phone and through the mail but can’t be used for in-store purchases that require a traditional plastic card.
18-Be Cautious with Electronic SignaturesA federal law enables shoppers to verify online purchases with merchants using an electronic signature. Usually, this process is nothing more than clicking on a box that says you accept the terms of the order.
The Electronic Signatures in Global and National Commerce Act, also known as the E-Sign Act, is a complex law. It states that electronic signatures and electronic records used in interstate and foreign commerce will not be denied validity just because they are in electronic form. Further, the law says that online purchases do not need to be accompanied by the more traditional handwritten signature on a paper document.
19-Know How Online Auctions OperateOnline auctions connect buyers and sellers, allowing them to communicate in a bidding process over items for sale. Many people are drawn to online auction sites because they allow you to buy items at discounted prices. And they offer a chance to sell some of your unneeded or unwanted possessions to raise extra money. For the most part, online auction sites are a safe way to exchange goods. But it makes sense to be cautious and aware.
20-Understand Your Responsibility for Sales and Use Taxes OnlineGenerally Internet shopping is sales tax free, but there's a catch. If an online merchant has a physical presence in your state, it is required to charge you sales tax. In most sates, consumers are required to pay tax on online purchases, even if the store doesn't collect it. Most states call this a "use tax." Efforts are underway to simplify the sales tax issue in many states.
