Automatic subscription renewal by credit card can be a problem

There have been reports that some Internet security product merchants design their order forms in such a way that subscription renewals will occur automatically using the credit card information you provide when you first order the product. A lengthy “Terms of service” document will often contain one line stating that, unless the company is informed in advance by the customer, automatic renewal will occur. Once automatic renewal happens, it will not be an easy process to secure a refund.

I recently purchased an Internet security product, using a credit card, from one of the companies listed in the report at the link below. The product has slowed my computer to a crawl at times and I will definitely not be renewing in July of 2008. Yesterday, I e-mailed the company and stated that I would not be renewing. Strangely enough, they replied that they do not have my credit card information on file and I would not have to worry about automatic renewal. I’m not taking any chances. Today I reported my credit card lost and will be receiving a new account number and card within six days. Besides, it’s a good idea to change credit account numbers every so often, as you would change passwords on bank accounts.

Check out the link below.

http://windowssecrets.com/2007/05/17/01-Microsoft-McAfee-Symantec-charge-cards-repeatedly

Protect yourself when paying for products and services in advance of delivery

We’ve all heard stories of people who signed up for weight control or fitness club memberships, paid in advance, and lost their money when the providers went bankrupt and closed their doors. Can the same thing happen when you’re buying a new bed or other hard goods from a local merchant? Yes, it can.

A bed and bedding products store in a city west of Kingston, Ontario, took deposits and full payments for bed sets right up until they recently closed their doors. As the store was not a franchise store, there was no parent company to contact. In this case, police determined that there was no intent to defraud customers, and the owners have assured all its customers that reimbursement will be made as soon as financing is secured. Those customers will probably lose sleep over this until they get their money back.

How can you protect yourself from this kind of a situation? Simply pay with your credit card. I telephoned my President’s Choice Mastercard service center and asked them what would happen if I paid for something on my credit card, it was never delivered, and the company left town. Mastercard assured me that, after they investigated and determined that the merchant would or could not deliver, I would receive a credit back on my account from Mastercard. That’s comforting! The lesson: leave your check book at home and never pay with cash.
The only exception would be when you can negotiate a discount for NOT using your credit card on a non-major purchase.

Credit card security tips

1. Take a good look at the credit card receipt you receive from a merchant. Many now show only the last four digits of your card number. Others will show your entire card number as well as your expiry date. Be careful not to lose these on the street or discard them in your garbage or paper recycling box. Fraud artists would love to find them.

2. When you pay with your credit card in a restaurant, do the transaction at the register to avoid problems. If you hand your card to the server, be sure that you get your own card back. Once the card is out of your sight, someone could swipe it twice or run it through a copying device. This is especially important when you’re on vacation far from home.