With the increase in online shopping, also comes the element of making online payments. Generally after entering the address, the website will ask you to choose a payment method, which is either a debit card, credit card or net banking. Here are some reasons as to why and how to use a credit card for making those online purchases.
Using your debit card for online purchases may prevent you from incurring debt, but they can also prevent you from getting the benefits that come with a credit card. These rewards can be in the form of cashback, reward points, and even airline miles. All these rewards can add up over time to give awesome benefits that would otherwise be lost.
You don’t need to do anything extra. All you have to do is make the purchase using your credit card and the rewards will automatically be added to your account. Plus, it always feels nice to get something extra on a purchase you were planning to do anyway.
Credit cards are more secure when it comes to online transactions. There are several reasons to why this is the case. Most credit cards come with a liability protection feature that protects the cardholder from any fraud transactions that have taken place on the card. This benefit is not available with a debit card and you may need to buy a protection plan separately.
Security of bank account
When you use a credit card for making a purchase online, you’re not entering your bank account details. So, if a fraud does take place, your savings are safe in the bank account as the maximum liability that you can incur is the credit limit on your card. Furthermore, you won’t be held responsible for the fraudulent amount, as the bank will investigate and you won’t be held liable for the fraud amount on your credit card.
Online statement access
Credit cards come with the feature of online statements, which can be accessed anytime, anywhere. This can be used to keep track of your spending habits. Sometimes, awareness of the fact that you’re spending higher than what you should be, is enough to motivate you towards curbing rising expenditure.
The online statement access feature can help you in this regard, as it will show the recent purchases made, which you can then use to gauge the impact it’s going to have on your budget.
Easier dispute redressal
When you use a credit card for an online purchase, you make a transaction that is called ‘card-not-present transaction’. This kind of transaction does not require you to be physically present for a signature. What this means is that in case of dispute, it is likely that the outcome will be favourable for you, as the bank will ask for the signature from the merchant.
Credit cards such as the RBL Bank SuperCard are ideal for online shopping as they come with the benefit of reward points and robust security that is taken care of with security features like ‘in-hand security’ and ‘zero-fraud liability cover’ that work to mitigate the threat of cybercrime.