Credit Cards and Online Shopping

CREDIT CARDS ANDONLINE SHOPPING

WHAT IS A PLASTIC CARD THAT AUTHORIZES THE DELIVERY OF GOODS AND SERVICES IN EXCHANGE FOR FUTURE PAYMENT WITH INTEREST, ACCORDING TO A SPECIFIC SCHEDULE.

CREDIT CARD

WHO MUST BE REPAID IF YOU USE A CREDIT CARD?

THE CARD ISSUER (CREDIT CARD COMPANY)

IF YOU DO NOT PAY YOUR CREDIT CARD OFF COMPLETELY EACH MONTH, WHAT WILL INTEREST BE CALCULATED ON?

OLD AND NEW PURCHASES

WHEN YOU RECEIVE THE CREDIT CARD STATEMENT, YOU SHOULD

TAKE A FEW MINUTES TO ENSURE IT IS ACCURATE

YOU WILL NOT PAY ANY _____ ON YOUR PURCHASES IF YOU PAY THE ENTIRE AMOUNT IN FULL EACH MONTH.

INTEREST

BORROWING MONEY FROM THE CREDIT CARD COMPANY IS KNOWN AS A

CASH ADVANCE

INTEREST ON A CASH ADVANCE BEGINS ____ AND MAKES IT AN EXPENSIVE WAY TO BORROW MONEY.

IMMEDIATELY

IF GIVEN AN ADVANCED NOTICE, WHAT CAN THE CREDIT CARD COMPANY DO?

CHANGE THE INTEREST RATECHANGE THE LATE FEE CHARGESCHANGE THE TERMS OF CREDIT

WHAT CAN BE INCLUDED ON YOUR CREDIT CARD STATEMENT?

CREDIT LIMITDUE DATEPAYMENTS AND CREDITSPURCHASES OR NEW CHARGES

SOME OF THE BENEFITS OF USING A CREDIT CARD INCLUDE

BUY NOW – PAY LATERCONVENIENCE

TRUE/FALSEWHEN SHOPPING ONLINE, KNOW EXACTLY WITH WHOM YOU ARE DEALING.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, CONFIRM THE SELLER’S PHYSICAL ADDRESS AND PHONE NUMBER IN CASE YOU HAVE PROBLEMS OR QUESTIONS AND NEED TO CONTACT THEM.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, KNOW EXACTLY WHAT YOU ARE BUYING BY CAREFULLY READING THE SELLER’S DESCRIPTION OF THE PRODUCT, INCLUDING FINE PRINT.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, KNOW EXACTLY THE TERMS OF THE DEAL INCLUDING REFUND POLICY.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, KNOW EXACTLY HOW MUCH YOU WILL BE CHARGED INCLUDING SHIPPING AND TAXES.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, PAY BY CREDIT CARD OR CHARGE CARD.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, PRINT AND SAVE RECORDS OF YOUR ONLINE PURCHASES.

TRUE

TRUE/FALSEWHEN SHOPPING ONLINE, CHECK THE SITE’S SECURITY.

TRUE

A ____ IN THE HTTP OF THE WEB SITE MEANS THAT IT IS A SECURED SITE.

S

TRUE/FALSEWHEN SHOPPING ONLINE, CHECK THE SITE’S PRIVACY POLICY.

TRUE/FALSETHERE IS NO DIFFERENCE BETWEEN ONLINE PAYMENT AND ESCROW SERVICES.

FALSE

WHEN SHOULD YOU BE SUSPICIOUS OF ONLINE PAYMENT OR ESCROW SERVICE?

WHEN THE SITE CONTAINS MISSPELLED WORDS OR CLAIMS TO BE AFFILIATED WITH THE GOVERNMENT

BENEFITS OF SHOPPING ONLINE INCLUDE:

STORES NEVER CLOSENO PARKING PROBLEMSNO AGGRESSIVE SALESPEOPLEEASY TO COMPARE PRODUCTS AND PRICESNO LOCAL SALES TAX

COSTS OF SHOPPING ONLINE INCLUDE:

MUST WAIT FOR DELIVERYSHIPPING AND HANDLING FEESDIFFICULT TO NEGOTIATE PRICECANNOT PHYSICALLY SEE OR HANDLE

A CONSUMER LINE OF CREDIT THAT CAN BE USED UP TO A CERTAIN LIMIT OR PAID DOWN AT ANY TIME

REVOLVING CREDIT

TRUE/FALSECREDIT CARDS PROMOTE “IMPULSE SPENDING” AND OVERSPENDING

TRUE

WHO DOES THE CREDIT CARD COMPANY PAY?

THE MERCHANT

WHEN DO YOU PAY INTEREST ON YOUR CREDIT CARD?

IF YOU DO NOT PAY OFF IN FULL EACH MONTH

WHAT ARE SOME REASONS FOR SHOPPING AROUND FOR A CREDIT CARD?

INTEREST RATES WILL VARYSPECIAL INCENTIVES WILL VARY

CREDIT CARDS ARE CONSIDERED

REVOLVING CREDIT

TRUE/FALSEDEBIT CARDS AND CREDIT CARDS OFFER THE SAME PROTECTION ONLINE OR LOCALLY.

FALSE