Q. What "Shopping Tips" is BBB suggesting to consumers this year?
A. Great question, at this busy time in daily routines there are many safety items to consider. First may be how to pay for our holiday purchases. The Better Business Bureau has advice about whether it is better to pay for your holiday shopping purchases with a credit card or a debit card.
When you use your debit card, the money is automatically withdrawn from your checking account which limits your available cash. Conversely, when you make a purchase with your credit card, it reduces your available credit limit.
Most credit card issuers have zero liability policies which will protect you from unauthorized charges, fraudulent activity or orders for products and services that you did not receive. Debit cards typically have limited liability policies which will require you to cover a portion of the lost funds.
Debit cards are a convenient way to budget and control spending since the money comes out of your checking account. However, if you have unauthorized charges or buy gifts that you cannot return, you will have more difficulty getting your money back than had you used a credit card.
BBB recommends using a credit card instead of a debit card for your holiday shopping. Vendors are often seasonal and could be gone in a month or two. If you bought something that broke, you would not be able to return it if you can't find the vendor.
BBB also recommends that you take these steps to protect your credit and debit cards when you shop and travel during the holidays:
1. If you are planning to make large purchases, you should notify your credit card company or bank to tell them or they could freeze your account thinking your card has been stolen.
2. Write your card numbers down before you go to the mall and the telephone numbers of your credit card companies and your bank. If your cards are lost or stolen while you are shopping, you will have the information to cancel them quickly.
3. Check your credit card and bank statements online when you return to make sure there are no unauthorized charges. Be sure to audit your transactions when receiving your online or printed statement.
Also, consumers need to be on high alert during the holidays, a time when scam efforts tend to escalate.
* Be careful purchasing items on Craigslist. Example, a consumer lost $2,500 on a motorcycle listing, after the "seller" asked him to use Green Dot MoneyPak cards to make an upfront payment for the bike.
* Beware of a fake email from Walmart, congratulating the consumer on winning a new iPhone 6. The email states the "lucky winner's" email was chosen from millions in the store's database. However, the winner is asked to pay for shipping and insurance by going to a website. It is a scam.
* Beware, fake order confirmations are going out to shoppers that look authentic, with purchase confirmations that appear to be from Walmart, Target, Costco, and other chains. The scammers are trying to lure the consumers to a fake website, where a malware-infested .zip file is automatically downloaded to their computer.
* Be alert to an email offer of a free pizza from Pizza Hut. The email claims the pizza chain is celebrating its 55th anniversary by offering customers a free pizza. All you need to do is download the attached coupon and bring it to the restaurant. It is actually malware that will corrupt your computer.
* Beware of delivery scams during the holidays. Scammers send an email that appears to be from UPS or FedEx, saying you need to pick up a package. It asks you to click on a link or to download a form for more information. The request for personal information could eventually lead to identity theft.
* E-Cards are a popular way to send a holiday greeting, but some are malicious, containing spyware or viruses that download onto your computer. Only open e-cards from a trusted source, and even that can be questionable.
* If you receive an email selling a "Handwritten letter from Santa to Your Child," it could be a scam attempt. One email that encourages parents to buy a special Santa package for $19.99, takes you to a fake website, where personal information could be compromised.
To read more consumer tips you can trust, visit www.bbb.org.
Jim Winsett is president of the Better Business Bureau of Chattanooga.