Clark makes about 50 small purchases per year on eBay. He especially loves the cheap cell phone/electronics accessories that he can pick up for around $5. In fact, he bought his daughter a case for her iPod Nano for $1.25 including shipping! The item came from Hong Kong, so you know the seller took a loss on the shipping charges alone.

Many people, however, use eBay for more expensive things. There's been a recent breakdown in trust between sellers and buyers. Sellers used to be able to manipulate approval ratings, but that system was done away with as eBay has tried to instill buyer confidence. Merchants are now angry that their customers can post negative things online and they're stuck with it.

One seller recently went so far as to sue a buyer who put up a neutral rating -- not even a negative one! A Seattle man named Steve Shellhorn was unhappy with the packaging that accompanied some coins he bought on eBay. So he posted his comments and was sued by a seller in North Carolina for $10K. The case was thrown out of court, but Shellhorn incurred $500 when he hired a lawyer.

The takeaway here is that a lot of people make "anonymous" posts on websites that trash other people or companies. But your identity can be revealed with a court order. So this is not to say that you can't use free speech; just realize you also have the responsibility to do it respectfully and factually. Not that those issues came into play in the Shellhorn case -- that was completely out of left field!

Purchases you make on the Internet are tax free, right? Wrong! The states are at it again trying to find new sources of tax revenue as we stare down a recession. They've now turned to trying to get the word out that you're legally required to pay sales tax on Internet purchases -- unless, of course, you live in a tax-free state. That's news to most people.

The courts have decided that web merchants are not responsible for collecting taxes unless they have a domicile in the state where the purchaser lives. But you still owe the tax. North Carolina has been aggressive about trying to collect. Some states are even participating in cooperative efforts where they'll rat you out to other states. We're not talking about something you buy for $12 on Amazon; we're talking about something you might buy for $12K online. 25 states now have a line on their income tax forms to collect sales tax on Internet purchases you've made over the past year. Consumers are expected to keep a log of all their e-commerce transactions and then report them!

Clark has had a love/hate relationship with eBay for a long time. On the one hand, he loves the deals he gets through the website. But eBay has been notorious for helping out fences and counterfeiters. So there are opportunities to save big, but there are times you may get burned too. Clark recently needed to purchase a smartphone after his was damaged during the Hawaii staff trip. When he called up his carrier for a price quote, what originally cost him $99 was now being priced at $599! So he went on eBay and found a nicer one for half the money. The risk is always that the seller gives you junk or doesn't deliver. But Clark had no such problems.

The level of savings you can get on eBay are not just anecdotal. Recent studies at the University of Maryland and a foreign university have found that consumers have saved a cumulative $19 billion (!) over the years thanks to eBay. Your typical eBay purchase is available at a discount of 30 percent versus the retail price. Not surprisingly, the greatest savings are to be found when the economy slows down and people have to dump new stuff they can no longer afford. Right now eBay is going through a midlife crisis. Their CEO is out, and eBay is lowering the costs of its items while raising commission on the sell. Clark thinks eBay needs to take a cue from Craigslist -- of which it owns a 25 percent share. Craigslist allows sellers to list their wares for free and not pay any commission when something sells. It's as if Craigslist is the new and improved eBay. The new CEO at eBay will be challenged with making a marketplace in which the counterfeiting is dealt with and people know they won't get junk.

Just the other day Clark was talking about Bill Me Later, a company that gives you an alternative to doing online transactions via the credit card cartels. The Wall Street Journal now reports that $1 in every $7 is being processed online through an alternative payment method. Clark has now learned that Bill Me Later, PayPal Checkout and Google Checkout are even better than he originally thought. All 3 are now offering extra incentives to get you to use them instead of your traditional credit cards. PayPal is offering a 20 percent cash-back discount, capped at $50. Not to be outdone, Bill Me Later has since started offering free shipping up to $20, and a no payment for 90 days policy at participating merchants. Google Checkout is also offering free shipping. Clark likes Bill Me Later best because they completely assume the role of a credit card and cut the usual Visa and MasterCard suspects out of the picture. That means increased benefit to consumers and merchants alike.

Do you often shop online? If so, you may see an option when you're checking out called Bill Me Later. This Baltimore-based company allows you to shop online without divulging your credit card information to every vendor. It's fast becoming the friend of merchants and customers alike, while Visa, MasterCard and the other traditional cartels grow to despise it. With Bill Me Later, you simply enter the last four digits of your Social Security number and you either get instant approval or you're denied. This is a more secure method to shop online. The other advantage is that Bill Me Later sometimes offers extended payment times at no interest. In addition, this is a money saver for businesses too. Merchants pay a lower fee per transaction than they would to process a normal credit card transaction. So Bill Me Later is a win/win situation for both consumers and businesses.

Clark wants to warn you about a new e-mail scam making the rounds. Criminals have been gaining access to e-mail contact lists and sweeping out all the addresses. They then send out a very distressed note in your name to every contact on your list. The e-mail will claim that you're in financial, legal or medical trouble and that you desperately need money right away. The criminals hope that even one or two of your closest friends will respond with an offer of funds. Public e-mail services such as Yahoo! have been hit by this scam, according to The New York Times. Sometimes the criminals will even change your password while they're in your account. At that point, it can be very difficult to reclaim your e-mail address. So if you get a suspicious e-mail from a relative or friend, call them first and find out what's going on before you give them your money. On a related note, there's now a $5 security key that really helps secure your PayPal account. The key generates a random code every 30 seconds that you must use to access your account. Even if a thief has your e-mail address and password, they still won't be able to get in without the code. These kinds of security keys have become so inexpensive yet so invaluable. Clark hopes that brokerage houses and banks will soon be offering these devices to customers.

There's going to be a marriage of TV and Internet in the coming years and the level of interactivity will be incredible. Clark was really excited when TechNewsWorld.com recently reported about upcoming innovations that will integrate e-commerce and TV programming in a new way. Say you're watching a TV show and you notice some really fashionable clothing or shoes being worn by an actor or actress. You'll be able to click with your mouse or TV remote and purchase the clothing or shoes right then and there via a pop-up purchase window. People who watch TV shows on the web are already experiencing this kind of cross-promotion on their computers.

An MTV reality series called The Hills is trying out this new business model. So TV viewers like Christa, Clark's executive producer, can purchase clothing worn by the show's Lauren Conrad while she experiences daily drama in the chic setting of her Teen Vogue internship. Not exactly the kind of advancement Clark was hoping this technology would bring us! He's looking forward to the day when there will be one junction box on your TV that bring together lots of programming from multiple platforms -- satellite, cable, the web, mobile and more.

Clark recently took his oldest child to college for the first time and came away with some musings about how much things have changed since he was in school. Back in the day, he went to campus with one trunk full of belongings. At his daughter's school, students showed up with fridges, microwaves, coordinated bedspreads and more. He even saw one student carrying in a 36-inch LCD hi-def TV. Meanwhile, everyone has cars on campus these days. When Clark was studying, freshmen weren't allowed to have vehicles. Sophomores could do so only with parental permission or if they had a job. Of course it goes without saying that when Clark was in college, there was no Internet, computers or cell phones. He used a typewriter and had one professor who did not allow papers to be turned in with any corrected letters on the page. If you made a mistake while typing -- even in the last sentence -- you had to start all over again.

Clark has one bit of advice for anyone who doesn't want to pay those hefty prices for college textbooks. His daughter's roommate spent $580 on books for class, while his daughter has to pay $135 for one book! Clark says to shop around for the books online. CheapestBookPrice.com, AllBookstores.com, Biblio.com, AbeBooks.com, A1Books.com, BookFinder.com, ValoreBooks.com and Textbook411.com are all good sites for this purpose. Amazon is also doing big business selling college text books, and there are some British book websites that offer science textbooks for about 40 percent off the domestic price (even when you factor in the cost of international shipping.) Don't buy your books before class starts. Go the first day and ask your professor if you can buy a prior edition and try to find it used.

What do you do if you need money but want to avoid borrowing from the banks? In the past, Clark has always recommended credit unions. But now there are even more options available. Prosper.com is a site where people lend money to each other instead of a bank being in the middle. The investor who takes a risk in lending to you earns relatively high returns and you get a low rate. This is a big success that's growing exponentially. The way it works is that a borrower gets a lot of cash from several different people online. That helps lower the individual lender's risk in the case of default. People are essentially becoming their own loan officers by calculating the risk to see if they want to be part of a loan. There's a similar website in Britain called Zopa.com that's getting ready to come to the United States. A little competition in this field is going to be a healthy thing. However, there are some core differences between Proper and Zopa. The former grades your credit and then assigns you a lender, while the latter is tougher and only allows loans to those with moderate credit.

The volume of transactions on sites like these is growing. So is this a threat to the banking business? While it's still small potatoes today, over time it could be. CircleLending.com is also a good site to use for lending to people who are your family members or friends because it helps you negotiate a contractual agreement. Meanwhile, Clark has a rule for lending to family that he calls the "one time out rule." It states that you can lend to a family member once (and only once) as a gift. Even though they will call it a loan, you may never see the money come back. If it does, you'll be pleasantly surprised. It's kind of the same idea as the old saying, "First time shame on you, second time shame on me."

For the first time ever, people are buying more clothing than electronics. One of the most customer-friendly and popular sites is zappos.com. They offer shoes, accessories and other apparel and there is no shipping – even if you’re returning. They have a one-year return policy, which is unheard of the in shoe industry. Online clothing retailers have electronic sizing on their sites nowadays, so the potential for correct fitting is much better. Another popular site is bluenile.com, which is outselling Tiffany’s in engagement rings. Both of these companies keep the focus on the customer and that is why they’ve been so successful. Other companies should take a hint and try it.

Free shipping is the No. 1 draw for people who shop online. This holiday season, online sales are up by about 30 percent compared to previous years. You probably saw lots of signs for free shipping at sites this year. But it’s important to read the fine print. With sites like Amazon.com, shipping is free after a certain amount. But it has to be a product sold by Amazon, not an outside vendor. Also, there are cutoff dates you must observe to get the free shipping and to deliver in time. Many stores also allow you to return items to the actual stores, even if you buy them online. So, what about shipping gifts yourself? Both FedEx and UPS make it very affordable to send items by ground. UPS bought Mailboxes Etc. and prices there are a bit higher than at a traditional UPS store. And FedEx bought Kinko’s. So, if you go to a Kinko’s to mail, you’ll pay FedEx ground rates. Sending by air is quite pricey and ground usually gets there in the same time. Sometimes, ground deliveries get there in a day. Just be sure that you package the items yourself. Having one of these companies package it for you costs a ton.

Clark read a story recently in the Orlando Sentinel about the many risks of online shopping, especially at holiday time. It’s so easy to get taken these days in online transactions because many of the Web sites out there are phony. Just about anyone can set up a domain name and start peddling goods. So, how can you protect yourself? One way is to visit whois.net, the site that lists the person or company that registered the site and when it was registered. If the site was just registered, you know it is probably not legit. Epinions.com and bizrate.com are other sites that rate companies and their customer service. You can also protect yourself at the payment stage by using checkout.google.com, the rival to PayPal. So, if you don’t know the site by name or reputation, always check it out before you buy.

Google has been a huge success in the Internet market and it is now branching out into yet another industry. You may have heard of PayPal. The eBay owned company has had the electronic payment market to itself. And, as a result, it has been able to treat customers in a mostly poor manner. But that’s all about to change. Google is now stepping into the ring and is offering a FREE electronic payment program. It’s called “Google Accounts” and it’s only available in test form and in certain markets. It will be available to people who use “Google Base,” the company’s equivalent and competitor to Craigslist, the online local marketplace that is partially owned by eBay. So, it’s a great alternative if you’re doing lots of online transactions and are either paying a lot or getting bad customer service from PayPal. Just remember that if you decide to use Google Accounts, there is no fraud protection at all. This would be the time for PayPal to step in and offer real service and protection for its customers. We’ll see what happens.

Web shopping is booming right now. In fact sales are expected to be up more than 22 percent this holiday season compared to last year. Why? People don’t want to get in their cars and drive around to shop because the cost of gas is so high. The down side to the online shopping is the change in shipping policies. Many have raised the amount of merchandise you have to buy before you get free shipping. Others have just created flat rates based on how much you buy. Amazon.com used to offer free shipping on orders over $25. But it’s so hard to tell what items are Amazon items and what items come from the other merchants on the site, which are not eligible for free shipping. So, the site has gotten much more confusing. Still, people visit it all the time. So, what percent of their shopping will people do online versus in stores this year? Would you believe it’s only 5 percent? Of course, some people will do 100 percent of their shopping online. But for the majority of people, they will do about 95 percent of their shopping in regular retail stores.

Clark has long been an advocate of electronic bill pay. In part, it’s the convenience once you get it all set up. But it’s also much safer. When you pay electronically you have proof that you sent it. It took a while for electronic bill pay to catch on, but many people have signed up over the past few years. It’s become even more popular since most programs became free. But, all of a sudden, people are canceling accounts. Why? All of the phishing scams have people really scared. These people may have been taken by a phishing scam and given their information to an organization they thought was a bank or legitimate organization. These criminals are very clever and they’ve managed to reach 2 million people out there. Not to mention the mistakes on the parts of banks themselves and the crooked employees in organizations like Bank of America and Wachovia who were stealing customers’ money. But it’s important to remember that most cases of identity theft happen in very low tech ways. All the same, online banking is under attack. Clark has to give Bank of America praise as while as criticism because it’s only fair. The company now displays a confirmation symbol to customers when they sign on to BOA’s legitimate site. It can be a picture you select or a symbol, and crooks won’t know it. So, if you don’t see that picture pop up you should be worried. It’s a great idea that Clark hopes others follow. Just be sure you're doing what you need to in order to protect yourself. The first is to be careful about who you give your social security number to. And, OPT OUT of credit card solicitations by calling 1-888-5-OPT-OUT.

About every day, someone calls the show about a late payment that is causing them some trouble. The consequences of doing this in today’s banking world are very unforgiving. Late fees are now in the $40s and $50s, and it’s okay for many banks to inform other banks and creditors that you are late with payments. That’s why it’s more important than ever to bank online. A survey done by the Pew Internet Project shows that about 50 percent of older baby boomers and 40 percent of younger baby boomers are banking online. About 60 percent of Generation Y consumers are banking online. It’s such an easy thing to do, once you set it up. And you always know that your bills get where they need to go ON TIME.

Across the nation, the interest rate for a simple savings account is around a half a percent. But some Internet only banks are offering much higher rates. ING Direct is offering 2.3% on savings accounts, and Emigrantdirect.com is offering 3% for a simple savings account. Better yet, there are no fees or games invovled. Your account will also be insured up to $100,000 by the FDIC. This is great for a rainy day account!

How do you pay our bills? In the year 2004, electronic bill paying makes a lot of sense. In fact, roughly one-third of Americans now pay their bills, or some portion of their bills, online. And that the number is heading up. What is the problem with the old system of check writing? If it gets to the creditor late, you – the consumer - have no proof that the check was sent on time. You may get stuck with a late fee, or even a mark on your credit. Clark has done electronic bill paying since the 90’s. Sometimes, banks and companies make mistakes. But if you pay though online bill pay, there is an electronic paper trail. Then if there is a problem, the service will step up and help. Listeners say that this system has helped them when there is a problem. The payer is protected. Try it.

Would you buy a $90,000 ring or a $20,000 bracelet on the Internet? Amazon is hoping you will and has been surveying people to find out. So far, they’ve found people are receptive to Amazon selling fine jewelry. Not all of it is fine jewelry. Prices will start at about $50. But Amazon is joining forces with tons of Internet jewelry sellers. The sale of online jewelry is up 40 percent in the last year. But only about 5 percent of jewelry sales happen online, according to the Wall Street Journal. Some people are still selling fake or counterfeit jewelry online. So, you need make sure you can get a full refund for the item within a certain period of time if you happen to change your mind. Usually jewelers will allow you to return within 14 days. That’s not a store credit. You need to make sure you can get a full refund for any reason. And get a receipt that says that. You need to be able to provide proof that you have a right to a refund. But think a different way about buying jewelry. If you’ve always bought from stores, consider trying the online route. You always want to compare.

Clark has been a fan of electronic bill pay for years. Today, he’s happy to report that approximately 20 million people are using electronic bill pay, and that number is growing. The process takes seconds once the system is set up. And the possibility of someone tapping into your account is almost nil. It’s much easier for someone to pull mail out of your mailbox and steal your identity that way. Also, think about how many times you send in a payment and a company claims you missed the due date. If you mail your payment with a check, you have no way of proving that you sent it on time. Clark even conducted an experiment into this issue in 1999 to find out for sure. Using a credit card, Clark sent nine monthly payments via “next day delivery,” and every one of them arrived within a day as expected. But of those nine payments, only two of them were posted on time. The other seven were posted a day or more after the due date even though Clark knew they arrived on time. You are protected virtually 100 percent if you pay electronically. It’s cheaper, quicker and more secure.