Many consumers may not be protected against online credit card fraud
A recent report has revealed that many consumers who assume that they have automatic protection in the event of becoming victims of online credit card fraud may not actually be protected at all.
 Many of us assume that when we use our credit cards to make purchases online we have online payment protection, but figures show that with many credit cards this is simply not the case. Around forty percent of credit cards do not even offer online payment protection, and many others provide this cover for an additional fee.
The news comes as American Express announced that it was going to start offering online purchase and fraud protection to its customers, enabling customers to pay up to two thousand pounds per online item with protection or a total of twenty thousand pounds protected purchases. However, for many credit card holders with other companies online payment protection must be purchased separately.
It is important for consumers to check whether or not they are covered for online payment protection with their credit card providers, and if not to check whether the card provider offers this facility at an extra cost. With more and more of us relying on the Internet to make purchases it has become increasingly important to ensure that we have the necessary protection in place to avoid becoming the victims of fraud and being unable to do anything about it.
Experts now hope that the move made by American Express to provide this valuable additional protection as standard to its credit card customers will make more credit card companies introduce this protection in order to provide consumers with peace of mind when shopping online. It is though that many companies will eventually follow suit, although this could take some time.
Alisdair Milton
28th December 2006
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