Why Most of the Shoppers Probably Using Credit Card While Shopping Online


Online shopping is no longer a novelty. Instead, technology has become a need and an integral part of our everyday life. From shopping for things not accessible in our local stores to paying EMIs, utility bills, and ordering meals, hardly a day passes without an internet transaction.


Consumers today spend hours researching the greatest things to buy online and looking for the best bargains. However, few people consider the payment method. To pay for their purchases, the majority of online consumers in India use COD (Cash on Delivery), a debit card, a digital wallet, or an internet banking account. Only a small percentage of customers use credit cards to pay for internet purchases.


There’s a common misconception that using a credit card results in increased fees and debt. Nothing could be further from the truth. This misconception is debunked in today’s post. We will explain why you should use your credit card to pay for your online transactions.


Why is a Credit Card Preferable for Online Shopping?


Here are the top six reasons why using a credit card while purchasing online is the better option:


Take Advantage of Rewards, Loyalty Points, and Cashback Offers


One of the most significant advantages of having a credit card is that it opens the door to a world of interesting offers and discounts. The majority of credit cards are part of a loyalty programme. When you spend a minimum sum of money, you receive rewards points that are credited to your account. The earned reward points can then be redeemed for presents, air miles, or even to pay for additional purchases.


Credit cards provide cashback for online purchases in addition to quick discounts and reward points. The concept of cashback is straightforward: use the card to pay for your online purchase, and a certain proportion of the transaction is rebated in the form of cashback to your bank account (credit card account).


Increase Your Credit Score and History


This is one of the most overlooked advantages of using a credit card. A strong credit score is advantageous in various ways. It not only increases your loan eligibility but also allows you to benefit from lower interest rates and loan offers.


One of the simplest methods to improve your credit score is to use a credit card wisely. A credit card is similar to a short-term loan, and by paying your monthly fee on time, you may establish a solid credit history. This has a beneficial influence on your credit score, allowing you to raise the numbers on your credit report.


Easy EMIs Allow You to Pay for Large-Ticket Purchases


A credit card allows you to pay for significant internet purchases in tiny, manageable EMIs. Assume you want to get the latest flagship smartphone but don’t have the money to do it all at once. You may finish the purchase online with your credit card and pay for it in EMIs.


Amazon, Flipkart, and other big online merchants have no-cost EMI alternatives for credit cards. You don’t have to pay any interest on the purchase if you use no-cost EMI. You use this service, make sure to select the credit card EMI option when checking out. Choose your desired EMI and the duration.


For the remainder of the term, the EMI amount will be taken from your credit card account.


Maintain the Safety and Security of Your Online Shopping


Credit cards, it is often assumed, are not as secure as debit cards. Credit cards, especially the latest-generation cards with an embedded chip, are extremely safe.


Even if someone steals your card number, he will be unable to use it because most credit cards now require two-step authentication. To validate the purchase, you must enter the card number, CVV number (the three-digit code on the back of your card), and the OTP obtained on your registered cellphone number.


Thus, credit cards provide an extra degree of protection and are quite safe for online purchases.


Protect Yourself From Faulty Goods and Fraudulent Transactions


Have you ever had a bad internet purchasing experience? You purchase a product with high hopes, only to be disappointed when it is faulty or counterfeit.


Because the sum is promptly taken from your account when you pay using a debit card or mobile wallet, you have no influence over the vendor. When you pay with a credit card, on the other hand, you have the opportunity to use the payment reversal tool. You can request that your card company reverse the payment, claiming the faulty goods.


Credit cards protect you not only against faulty items, but also from fraudulent transactions. If you suspect fraudulent activity on your credit card, contact the credit card provider. If the transaction is fraudulent, the card issuer examines it and reverses the charges. This dispute resolution option is also accessible for debit cards, however it usually takes longer to settle.


International Shopping


One of the most significant advantages of buying online is the ability to purchase from anywhere in the globe. The majority of eCommerce merchants now provide international delivery. However, there is one caveat: not all foreign retailers accept debit cards or online banking. You may use a credit card to purchase on any website in the globe and have your favorite things delivered directly to your home.


When Should You NOT Use Your Credit Card To Make an Online Purchase?


While using a credit card for online shopping has various advantages, there are some situations in which you should not use one. They are as follows:


  • You Struggle to Pay Your Credit Card Payments on Time and in Full

If this happens frequently, stick to debit cards, online banking, or COD. This way, you spend just what you have on your account, avoiding the trap of credit card debt. Failure to repay a credit card payment on time and in full results in significant interest rates and late penalties.


  • You Have a Tendency to Splurge

If this describes you, it is better to pay with debit cards. This manner, you may limit your spending to the funds in your account.


  • You Frequently Spend the Whole Credit Limit on Your Card

Maximizing your credit card limit is bad for your credit score in the long term. If you have a credit card with a low credit limit, you can seek an increase from your bank/card issuer. If that isn’t possible, it’s best to avoid consistently exceeding your credit card limit.



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