Term Paper on "Identity Theft When it Comes to Purchasing"

Term Paper 10 pages (3016 words) Sources: 5 Style: APA

[EXCERPT] . . . .

Identity Theft

When it comes to purchasing, accessing, and transferring online, credit cards are moving its way above. More and more people today are enjoying the benefits and rewards of using credit card online (Shop Safely on the Web, 2006).

Credit card is a form of payment represented by a thin plastic which serves as an alternative option to actual cash. A credit card allows you to buy things you want online and offline. Credit cards allow purchasing items from the comforts of their own home, by merely typing the required description, quantity and other relevant details of the item intended to purchase (the Pros and Cons of Using a Credit Card, 2006).

Consequently, technology allows credit card users to access their accounts through online banking anywhere and anytime. Online banking is accessible at home, in the office, internet cafes, or any location that has available internet access. It is always accessible for purchase, transfer, and payment of credit card accounts quickly and conveniently making things easier for all users (Online Credit Card Account Access, 2007).

In the past, the concept of online banking appeared to be uncertain and unacceptable one. A lot of people worries about the authenticity of security plus the presence of computer glitches making them doubt its capacity. But with the continuing success worldwide, more and more people saw the potential of using online transactions as a tool to do business over the web. In the advent of sophisticated technology, online banking offer several advantages over traditional banking (Kenny, 2007).

Online banking or sometimes known as internet banking is a term used in performing transactions over the Internet through a bank, credit union, merchants etc. This allows customers to do their banking inside and outside of bank hours at any location where Internet access is available (Online Banking, 2007). It refers to systems that enable online users to access accounts and general information on bank products and services such as credit card payment, online purchase, and manage funds online (Internet Banking, 1999).

A growing number of people now realized how great a credit card is when it comes to purchasing items or procuring services online. At present, there is no need to carry cash all the time. The availability of credit card as one of plastic accounts that would serve the same purpose as money. The power of this thin plastic credit card are accepted by millions of establishments all over the world online or offline payments makes paying with credit cards much easier (Pros and Cons of Using a Credit Card, 2006). Thus, with an increasing number of consumers utilizing the global marketplace of the Web, convenience has become one of the primary factors for purchasing, transferring or paying online (Convenience Factors, 2002).

Every people when they hear the word Internet they expect convenience, speed and efficiency. These same expectations apply to online banking or online transactions. Consumers view online banking as a fast and easier way to pay bills, access accounts and transfer finances. However, there are few drawbacks to online banking when used inappropriately (Pros and Cons of Online Banking, 2007).

Nevertheless, the most obvious benefit of online banking is the convenience of being able to do banking 24 hours a day, seven days a week, saving time and effort by only a click away (the Pros and the Cons, 2004). It is like banking anywhere, at any available time. Credit card bills can be paid with a few fincger clicks, so it is easy to save the time of writing check payments, addressing and stamping envelopes and dropping them in the mail. Even the comfort of transferring money from one bank to another bank or merchant the convenience of transferring funds online make it easy for everybody (Kron 1996). In addition, credit car makes purchasing online easier. Even cash is not available at hand, with the use of credit card cash is no longer a problem because credit card can let you purchase items whenever and wherever you want (the Pros and Cons of Using a Credit Card, 2006).

The accessibility to be able to log on and carry out online transactions at any location and hour of the day or night could be a welcome alternative than visiting the bank on lunch hours. For those in shift related work, this can be a real God send advantage. No queues and no bank holidays, which means customer has even more control over their finances. In addition, account information is displayed as a clear statement and no more riffling through mountains of old bank statements to find the information needed (Kenny, 2007).

As such, the accessibility to bank, purchase or transfer funds online can be done from the office, home and even at the local coffee shop. There is no need to have any special computer program in order to log on or register to the account (Bank Information - Internet and Online Banking, 2005). Thus, things are much easier in doing online transactions.

The convenience, accessibility, and speed are not only the positive points given by online use of credit card but to top all that credit card can even increase purchasing power. The need of paying bills or wanting to buy something important there is no need to pay it in cash or go out and buy on the store and wait for a long line of payment. The use of credit card in lieu of cash can make you buy things online and offline. Shopping spree is easier with just thin and small card on your pocket. The power of clicking finger can make you purchase any thing you need or want for you and your family's consumption (the Pros and Cons of Using a Credit Card, 2006).

The convenience of using credit cards online or banking online makes process and executes transactions faster than traditional banks. These tools help you manage your assets more effectively (Singh, 2006).

Credit cards are not all advantages, it has also some downside. When it comes to using credit cards online or online banking there are also unfavorable considerations which you must bear before deciding on using a credit card for your needs (the Pros and Cons of Using a Credit Card, 2006).

In times of new in using online transaction, it might take time to register on bank's online program. or, it may be easier to physically fill out a form at the local branch than undergoing the online registration process. Sometimes when you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank allow to divulge information for both parties (Pros and Cons of Online Banking, 2007).

Moreover, some banking websites can be difficult to navigate. There is need to invest some time and/or read the tutorials in order to become comfortable in using the website account. Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information all over again dealing another form of tiring and time-consuming registration process (Pros and Cons of Online Banking, 2007).

For most people the biggest obstacle to online banking is learning to trust it and to be sure whether it is secure. The main concern of online banking is security, protection of customer's privacy and protection against fraud (Singh, 2006). Trusting an online banking system is a considerable thing for two main reasons due to identity theft and operator error. If you use a non-secure wireless Internet connection, it might not be a good idea to use online banking. it's too easy for a savvy ID thief to view your personal information making it easier to manage your financials and create false representations (Pros and Cons of Online Banking, 2007).

Indeed, the fear is very real, more and more banks are reporting fraudulent access to bank accounts using Internet/Online banking. Consequently, the safety factor is a very real one (Bank Information - Internet and Online Banking, 2005).

Security is by far the biggest concern surrounding online transactions, with consumers worrying that hackers will get into their account and spend their money (the Pros and the cons, 2004). Credit cards are prone to security issues, especially when it comes to online transactions. The details found in credit cards aren't really embedded in secure channels. Anyone who manages to intercept the data found on your credit card can easily use your line of credit for their own purposes. As a result, making you suffer for the mistakes that you never done (the Pros and Cons of Using a Credit Card, 2006).

Internet banking or online banking, offers advantages such as speed, convenience, save time, money and effort, but it's important to protect yourself from the potential pitfalls (What you should know about internet banking, 2007).

Since the Internet is a public network, it's important to safeguard your banking information, credit card numbers, Social Security number and… READ MORE

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