Even in the wake of the global recession, online shopping is growing. Internet orders were up by 19 percent in 2009, according to the e-Retail Sales Index. Why are consumers looking for household savers That's easy, the price.
The average online business can offer discounts of up to 30 percent off retail prices. They accomplish this awesome feat by cutting costs to the bone. How? To begin with, most virtual businesses do not actually own, rent, or lease a brick and mortar building. This means that they do not have to pay the costs associated with running a traditional retail business. No rent, no electricity, no insurance, no large staff. As a result, they can sell their goods at much lower prices and still make a profit.
Of course, it isn't quite as easy as it sounds. In order to sell goods on the internet, a business must obtain an online merchant account. These accounts are backed by banks and other financial institutions whose job it is to review and validate each credit or debit card transaction.
As a consumer, you should never purchase anything from an online business that does not have a valid merchant service account. Most sites advertise this fact on their websites by noting that they are PCI DSS Complaint. PCI stands for Payment Card Industry Data Security Standards. Basically, it is a set of continually updated rules and standards that all online businesses must abide by.
If you are concerned about identity fraud and theft when making a purchase online, it is always best to shop only at the most popular sites. You might end up paying a bit more, but you can be sure that your payment is secure.
