Take Dale Kemery, a Web designer in Wheeling, Ill., who gave RealNames his card number. Customers are becoming more comfortable about credit card use, but the hacking attacks could wipe out the gains. Most browsers, including those by Netscape and Microsoft, now come with scrambling features that make it virtually impossible to intercept a credit card number. And customers about to send card information can look for signs of security, such as the closed padlock symbol at the bottom of the browser window. Beyond that, security is largely up to the merchant.
Many retailers take extra precautions, especially after they've been hit.
But it's difficult for customers to tell which merchants do simply by looking at the site. And because retailers don't often publicize break-ins, it's unclear just how big the risk may be. Credit cards dominate online transactions largely because no alternative is yet viable. Cash and checks take too long, and Internet currencies resembling gift certificates or prepaid phone cards are still obscure. Deborah Williams, research director at Meridien Research Inc. in Newton, Mass., predicted more merchants will embrace online currencies in the next few years.