Know the Merchant
Shop through venders you already know and trust or are referrals from friends. You can often find useful information about online companies from Internet news sources, directories, and rating services. The Federal Trade Commission maintains a web site (www.consumer.gov) that provides buyer's guides, tips and links to helpful resources.

Protect Your Privacy
Be aware of what information the vender is collecting about you. Find out how it will be used and if they share it with or sell it to others. Check to see if the company has a privacy policy posted. Most reputable companies will post their privacy policy in an easy-to-read place on the site. Always read the fine print. Don't answer any question you feel is not required to process your order such as your Social Security number or personal bank account information. Also, look for seals from privacy enforcement organizations like TRUSTe or BBBOnLine. Use a separate email account for your online purchases. Set up a free email account on Google or Yahoo, among many others.

Get All the Details
Check for expected delivery dates, shipping and handling fees, warranties, return policies, cancellation policy, and other important information. Look for an email address to write to (or a phone number to call) if you have a question, a problem, or if you need help (not just now, but in the future.) Also, check to see what other consumers have to say about a particular company by checking reviews at Bizrate and Epinions.

Use a Credit Card
Make payments with credit cards whenever possible. You can easily dispute merchandise never ordered, never received, or misrepresented, if you used a credit card. Never use a debit card - it allows access to your banking account. Don't choose to have the seller retain your credit card number on file for future orders. Never enter personal information into a pop-up screen.

Use a Secure Internet Connection
When using a credit card online, look for an unbroken key or padlock (a graphical icon usually located in the bottom corner of the web page). Reputable sites use technologies such as SSL (Secure Socket Layer) or SET (Secure Electronic Transmission) that encrypt data during transmission. Another way is to check the address of the web page you are accessing; it should begin with "https". Don't be fooled by fake sites that feature convincing "security" measures. If you are unsure about a site, right-click anywhere on the page and select "Properties." This will let you see the real URL (Web site address) and the dialog box will reveal if the site is "not encrypted."

Keep Good Records
Print or save electronically (as a PDF file) any records related to your online purchase. This will help you keep track of pertinent information, such as shipping dates, shipping and handling fees, and other details of your transactions, in the event of a dispute or problem. Never respond to emails asking you to "confirm" recent transactions after you shop.

Be Wary
Check your credit card bills carefully for several months after purchasing on the Internet. Be skeptical of deals that appear too good to be true. They probably are. If you have suspicions, call the merchant and speak to a live person. Ask a few tough questions to get a feel for the company. A reputable merchant should provide their phone number on their site. Before making a purchase through a new vendor, ask these questions:

• Do the prices seem unusually low?
• Does it look like the merchant is an amateur or a professional?
• Are there a lot of spelling or grammar errors?
• Does the company's phone go unanswered or is there an outgoing message?
• Does the merchant provide the company's physical address?
• Does the company make extraordinary claims that you question?

Is Your Computer Protected?
Make sure your computer is equipped with updated spam filters, anti-virus and anti-spyware software, and a secure firewall. Check for and install any new security updates for the programs on your computer and its operating system.