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Paying Online: Best Practices -- how to max benefits, min fraud

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BostonCharlie
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Paying Online: Best Practices -- how to max benefits, min fraud

Post by BostonCharlie »

Starting a new thread to break this topic out of the deals thread. Conversation started here, quoted below:
peskydonut wrote: Fri Sep 06, 2019 9:04 am
BostonCharlie wrote:
peskydonut wrote: Thu Sep 05, 2019 11:12 pm NAD

By the way, for your future questionable purchases, PayPal offers a Prepaid MasterCard:

https://www.paypal-prepaid.com/
https://www.paypal.com/us/smarthelp/art ... AE-faq3394

I really don't know much about this card or how it compares to other prepaid cards, I just came across while trying to decide if I want to use "real" credit card or not.
Maybe I'm wrong, but I figure that a credit card is preferable to cash-like (or debit) cards for purchases from questionable sellers. I figure that the cc company has a strong interest in detecting fraud, and it seems like they are pretty good about protecting the buyer. I'm not speaking from first-hand experience, however. But I've heard stories where when fraud is afoot, the cc company will take the hit and shield the buyer if that's what it comes to. I would be interested to learn if I'm totally off base, here. OTOH, if you end up having to get a new cc number, that would be a hassle. Good reason to have a few different cards, I guess.
That's a good point. I've been pondering that myself. There's also a $4.95 monthly fee, at least for the PP card. No thanks.

Something like a Virtual Credit Card may be a better option, though again I'm not speaking from experience.

https://www.creditkarma.com/credit-card ... edit-card/

If anyone has insight, please chime in.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by skyleth »

Unfortunately Bank of America is ending their Shop Safe virtual cards on September 20th... Which is a bummer, because I use it for exactly this. Not sure about the other programs though.Image

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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by MoT »

I have a PayPal Business debit card. It's free to get. The only downside is you have to convert your PayPal account to a business account and suffer the fees that come along with it when receiving money (if not sent F&F). Not really a big deal to me, especially considering you get all the standard PayPal buyer protections when using the card.

I have it linked to my bank account, and I have been using it for years as my primary purchase method. I have never once run into an issue with abuse, and when I have had to make claims they were handled quickly and with no fuss.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by BostonCharlie »

We aren't very strategic about payment cards -- except that we pay every statement in full. We have one card that has no annual fee but pays some kind of cash back, and we use it for everything. Then I have a backup card in my wallet for when machines balk at my first card. We also have a Target "redcard" floating around that gives 5% off and free shipping from Target.com -- we just don't shop there enough.

I see that Amazon has a couple card options for Prime members that give 5% points on Amazon purchases, among other benefits. They had a signup promo running for awhile -- $70 Amazon credit, iirc. If it comes around again I might bite.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by The Sultan of SoWhat »

I posted way back when (can't find the post, though) about money rewards on the Amazon card (issued by Chase).

Don't use the credits to buy an item from Amazon (though the site gives you a tempting link). If you do, you won't get any credit for the amount you have used; thus you will be forfeiting 3% or 5% (for Prime) back on that amount. Remember every little bit of credit adds up to more money in your pocket.

Instead, get your cash back through the Chase website--either by asking for a check sent to you or asking to have the credit posted as a statement credit.

I imagine that the same holds true for store cards at other sites.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by AndyS »

Coming from a bank operations background and even working a few projects with some of the teams that ran Reg E and other transaction dispute processes, if you're payment choices are credit cards or debit cards, always go with the credit card. Especially if your debit is tied to a checking account you use for important stuff.

First, with a credit card, you've got a billing cycle to identify and correct a transaction before it hits your "real money". You're not going to bounce your mortgage because you're primary checking is compromised if a credit card is exposed. A credit card is effectively a firewall to your real money.

Second, generally credit card dispute processes are faster and easier on the consumer. In the last 25+ years, I've had a few times where my card has been compromised (several when I traveled a lot), and the worst real impact to me was having to switch some automatic transactions over to a new card number. I've never lost money.

I've always paid my credit cards off every month, so it helps to have that kind of discipline vs carrying balances. I always try to use my purchases through a credit card like a debit card in my head, but with a month's float and whatever benefits a particular card provides to me.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by BostonCharlie »

Okay, so I opened my Amazon App and discover a promo: $100 Amazon gift card with approval for their "Amazon.com Store Card." We have Prime, so we would also be eligible for 5% back on (Amazon only?) purchases. (Funny thing: visiting their site on PC they only offer a $10 gift card with approval.)

There is no annual fee for this credit card, and it's issued by Synchrony Bank. Is there any reason why we shouldn't apply? Thanks.
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Re: Paying Online: Best Practices -- how to max benefits, min fraud

Post by BostonCharlie »

I decided to set up autopay for various bills so that they use one of my credit cards. My idea is to dedicate just one CC to all bills, hopefully reducing the chance of its number getting stolen -- I would use a different card for shopping.

I have two credit cards right now. Is that enough? I like redundancy for situations where a CC fails to work with a terminal.
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