BBC NEWS | Programmes | Working Lunch

Our Christmas questionnaire revealed that a surprisingly large number of Working Lunch viewers expect to buy most of their presents on the Internet.

While High Street chain stores are still the first choice of the majority, 17% of viewers will be turning to the Net.

That makes e-shopping more popular as a first choice than mail order or small independent shops.

Caution

Royal Mail and research group IMRG forecast that the value of online retailing will break the £1 billion barrier this Christmas - a 40% increase on last year.

But research by the Department of Trade and Industry finds that people are still cautious about shopping on the net.

padlock
Look out for the padlock symbol

Nearly a third of the public fear credit card fraud and 14% worry that they won't be able to track down companies that they've paid money to online.

So it's wise to take certain precautions to make sure that you don't fall victim to fraud and that you don't incur unwanted and unexpected costs.

Recognisable

You may want to only shop at online names you recognise.

The DTI certainly suggest going to recognised and recommended retailers.

But there are other firms that only trade online.

You may want to look out for the logos that indicate sites are members of various schemes designed to ensure certain standards of service.

The government endorses the non-profit making
TrustUK scheme, whose logo can be seen on many sites.

The
Which? Web Trader scheme is a similar initiative, run by the Consumers' Association.

Security

You also need to ensure that private information, like your address or credit card number, is securely sent to the online retailer.

When you come to enter this information you should check for a small yellow padlock on the tool bar at the bottom of your internet browser.

This indicates that the site is secure and information should not be accessible to anyone other than the retailer.

You can set up Microsoft Internet Explorer to inform you when a site you visit is insecure.

To check if a site is secure click on:

Go to 'Tool'

'Internet options'

'Advanced'

'Security'

Go to the 'Tools' menu, then 'Internet Options', click on the 'Advanced' tab and select the options under the 'Security' heading that are appropriate for you.

Doing this means you are informed when you move from a secure site to an insecure one.

Behind the web address

Many people worry that 'real' companies that you can easily contact may not lie behind seemingly genuine websites.

The E-Commerce Directive 2002 stipulates that any site that makes money must offer transparent information to the consumer.

The site must provide a name, postal address and e-mail address.

Not only is it a bad idea to buy from a site that doesn't provide such basic information - it is now against the law.

Don't forget the detail

Of course, it's also wise to find out other information from the retailer's site.

What is their refund and returns policy? How long will goods take to arrive? Exactly what will postage and packing cost you?

When buying online it is sensible to print out copies of all communications between you and the company including order forms and confirmation pages.

Protection

It could be argued that when buying goods online you are now provided with more protection than when you buy in the high street.

cartoon man at computer
Buying online can give extra protection

The Direct Selling Regulations, which apply to online retailing and mail order, provide for a seven day "cooling off" period on some orders.

This means that if you receive a product and are unhappy with it, you must be allowed to return it within seven days and receive a full refund.

The measure is designed to counter the risk you take when you buy something that you can't look at, feel and try in the same way that you can in a shop.

Fraud

If you are unlucky and fall victim to credit or debit card fraud, you are also protected.

The most, in theory, you will have to pay is £50 if you report the fraud to your card provider and the police.

But in practise the bank or building society will refund the full amount, unless you are found to be negligent in some way.

The
Card Watch website has lots more information on preventing credit card fraud.

Buying from abroad

More of us are buying online from companies outside the UK than ever before.

While you may benefit from lower prices, it is worth bearing a few things in mind.

Firstly, credit cards allow you to pay in most currencies so you need to ensure you know which currency you're paying for your goods in, whether your credit card will charge you for paying in another currency and what the exchange rate will be.

Secondly, you need to check your goods will arrive in time - especially at Christmas!

If you buy from America, the company may courier your goods in time.

But if they send them by standard US post then they may take as long as a month.

Ask the retailer for an estimated arrival date.

Finally, always be aware that you may be charged for customs duties that might not be obvious when you actually purchase the goods.

Buying from a foreign website:

Which currency are you paying in?

Will there be an extra charge on your credit card?

What is the exchange rate?

Will the goods arrive in time?

Are you liable for customs duty?

Goods imported from non-EU countries are liable to these charges by Customs and Excise.

The duties are paid at the point of entry to the UK, so are often paid by the courier company and not imposed when you actually make your purchase.

Most couriers will pay the charge on your behalf and will then pass on the cost.

This may be a nasty shock and might wipe out any savings you made in the first place!

One Working Lunch viewer, Una Tucker, was shocked to receive a bill from her courier three months after her parcel arrived. It was for around £350.

When buying from abroad, ask your delivery company for an estimate of import duties or take advice from
HM Customs & Excise.

The Internet can be a great source of good value gifts and provide more choice than you can ever hope to get on the high street, as long as you're a savvy shopper!