This holiday season as both internet traffic and the number of online transactions increase, safety and security continues to be the hot topic for online shoppers - unfortunately, gift giving is not the only thing on their minds. As online jewelers we are always walking a balance between protecting our customer's security and managing fraud especially concerning diamonds and engagement rings. Jewelry is a slightly different purchase than electronics or flowers as it is a gift with a large potential value contained in a very small box. Jewelry has a direct value which can be retrieved by simply melting gold or silver or selling loose diamonds.

Protecting customers with secure shopping

Most customers are very worried about fraud and the validity of merchants. As a rule of thumb most online merchants tend to be legit and trustworthy (not all, so be vigilant). However merchants are much more susceptible to fraud than customers, as customers can complain to their bank or credit card company as a recourse, however merchants are usually left wide open when they ship a high value order.

Most jewelry merchants will contact a customer on a high value order in order to verify the validity of billing and shipping information and make sure the customer's expectations are met. In some cases due to the nature of diamond jewelry especially, customers may be required to ship to the same address as their billing address or make sure that their shipping address is on file with their bank. In addition, with very large purchases additional information may be required to ship the goods.

What's a Diamond Certificate?

When purchasing expensive jewelry, most online retailers offer detailed information about the item (diamond size, weight and clarity) and on higher-end diamond rings a certificate from the GIA (Gemological Institute of America) and EGL may be included. Items which have a certificate included usually are priced slightly higher for this authentication. However jewelry without a certificate is usually fine if it is purchased from a respectable jeweler.

What You Should Look For From an Online Retailer When Shopping Online?

Do not judge a book by its cover. Many retailers with funny looking websites are very secure and many sleek clean websites are less than secure. Technology and proper fraud management come together to provide a secure website for their customers. Here are a few tips you should look for on the web site to help insure security.

1. Customers should always check if there is a toll free 1-800 phone number available to contact the merchant directly. The customer should be able to contact the merchant during business hours and verify that there is always a direct human contact for any enquiries and that proper information can be delivered in a timely manner.

2. Every online retailer should make their security policy available on every page of their website. This policy dictates the conditions for security within the website and if these conditions are being met.

A secure socket layer certificate (SSL) is required for every online store to make sure your transaction is processed securely during the checkout process. Most web browsers today enable you to validate and authenticate specific information concerning a company and website via the certificate provider. MyJewelryBox.com, for example, uses VeriSign.

Shoppers should not be fooled by fancy logos, as security is not related to how fancy the security logos are on the bottom of a screen but rather the technical security and the level of encryption on your credit card data when the transaction is occurring. Today most online companies must be PCI compliant as well, which insures that your credit card data is being stored securely and that it is being erased within an acceptable period of time. A respectable merchant will not store your credit card data for more than 60 days.

3. Does the merchant offer a warranty or guarantee on the items which are being purchased. Is it easy to return the item that was purchased easily? Always read the fine print! Always review the retailers return policy. A good return policy is one which provides a 30 day money back guarantee or possibly longer before the Christmas rush.

4. Research the website you are purchasing from. Find out what others have to say about this website. Find 3rd party customer reviews from product comparison portals such as MSN.com product reviews, Bizrate.com and or pricegrabber.com. These reviews will help to authenticate the validity of the company. If many people have shopped at that retailer over a 12 month period, then usually that retailer is there to stay.

What Happens when I make an online Purchase with my Credit Card

Tips to Understanding Online Credit

Online merchants have a variety of methods available to charge customers. However when talking about credit card transactions they must follow banking practices and conform to a more bricks-and-mortar retail approach. Below is a quick summary of what happens when you make a purchase with a credit card online. Remember, a customer will always decrease his chances of being defrauded by providing the most accurate credit, address and contact information and by sending the package to him/herself. The easier a customer is to contact the faster issues can be resolved.

How is credit charged to a credit card?

When an order is placed usually an authorization is performed on the customer's credit card. An authorization only holds the funds until a settlement of funds can be performed. Settlements on the customer's account are usually done after the order is approved and ready for shipment. Occasionally customers click the "Submit Order" button more than once and may create extra authorizations on their credit card depending on the merchant. A merchant will usually only settle one authorization per customer and should not charge the customers credit card when multiple authorizations are placed.

What is an authorization?

An authorization is a freezing or holding of funds on a credit card for a few days, which can either be settled for money or canceled and never settled. Canceled authorizations can take 3-7 business days to be released by the customer's bank unless a merchant contact's the bank directly to manually remove the authorization.

What is a settlement?

A settlement is when funds are requested from the customer's credit card company in order to fulfill payment on a purchase.

This holiday Season Make it a Secure Purchase and a great gift.

Holiday shopping should be easy, quick and secure online. The customer should always feel that they are able to process the order quickly and efficiently in a secure environment. Sites which offer user name and password account creation add an extra level of security to an order but no extra security within the transaction itself. Remember banks are sometimes very difficult to deal with for both the merchant and the customers, and the best policy is to have patience and a good line of communication with the merchant to resolve any potential issues. As a rule, a good merchant will report fraud instances to the bank and to the customer who was defrauded if possible.

Remember, every online merchant wants to provide great service to their customers and try to offer the most secure environment they can. They want to make sure that every order is legit and it is the job of every lawful customer and merchant to work together to avoid fraud and keep a safe and secure online shopping experience for all.

---