Which is safe way to using Credit Card on the internet? or Officeline?

Hi All,
I am VenkataRamana, few days back when i asked one of my friend to book the flight ticket on-line he is worried about using credit card online. I would say that is because of lack of knowledge on the subject. Believe me, using Credit Card on the Internet is safer than using it offline!

What happens when you are buying online?

# You will be entering your credit card information on your computer

# The information is transmitted through telephone line to the credit card payment gateway server

# The gateway server verifies and approves your credit card and withdraws money from your account and credits to the seller

# On successful payment, the gateway server directs you (the browser) to the product download page or order acceptance page

Here you can see, when you enter the credit card information, it goes directly to your credit card server and not the merchant.

The security issue here is, a hacker can hijack the data entered on your computer. But since the data is encrypted using 128 bit SSL code before it is transmitted, the hacker cannot get your credit card details.

If you can't understand what is 128 bits encryption, please read the first article listed below. It has been clearly explained in the laymen's language.

The possiblities of losing your credit card information to hackers:

1) By reaching a wrong website and entering your credit card data on a non-secured server.

For example, if you know http://www.ebay.in/ is a reliable website, and the hackers also know that. So they will launch a website like http://www.ebays.in/ or http://www.ebuy.in/ Usually such minute variations go unnoticed.

Thinking that you are paying to ebay, you will be entering the credit card details at a hacker's site. They simply store the information and misuse it later.

Secondly, the hackers pose as if they are the credit card company (or bank) and email you asking the details. You should keep in mind that no genuine company will ask for such details through email or phone.

The most dangerous places to use your credit card are Porn Sites and Gambling Sites. If you are serious about business, never ever visit such sites. Usually these are the sites where viruses and spyware software originate from (though there are few legal sites avialable, we cannot differentiate).

Don't borrow on your credit card! click to know why

2) Through a spyware (virus) on your computer.

There are many viruses that register your keyboard strokes (whatever you type) and keep sending the details to hackers.

To prevent such spywares, there are lots of utilities available today free-of-cost. You can try installing Yahoo tool bar which includes anti-spyware. I believe Microsoft also offers with free anti-spyware software.

In addition to freeware, it is recommended to have a reliable anti-virus package loaded on your computer.

If you have taken care of the above two reasons, you need not worry about using credit cards online. I am not telling you to blindly listen to me. Just visit the links provided at the end of this article and study for yourself.

What happens when you are paying at a hotel?

# You give your credit card to the waiter

# The waiter takes it to the person at cash counter

# The cashier swipes your card on the swiping machine

# The swiping machine transmits the data through telephone line to the credit card server

# The server verifies and approves your credit card and withdraws money from your account and prints the receipt

# The cashier hands over your credit card along with receipt to the waiter

# The waiter brings it back to you and you acknowledge the receipt

Let me ask you one simple question:
What if the waiter or the cashier writes down your name, credit card number, date of expiry and the 3 digit security code (behind the card) and misuses for his/her own benefit or pleasure. He/she could even use it on the Internet, can you control that?

I hope you understand that using credit card online is safer than offline.

Another information, whenever any transaction occurs online, the ip address of the computer (from where it is transacted) is registered (these days even a normal membership sites use this technology). It is very easy to catch the thief using the ip address.

Secondly, in 2001 the first cyber police station was inaugurated in India. Today we have many police stations functioning for cyber crime. Please check this link to know about cyber law and this link about cyber police stations for more information.

Now you can think your self about the way in which you can use your credit card safely, please write you comments about this...