Lifestyle

Why is credit card the first choice of online shopping lovers?

The popularity of online shopping has witnessed a considerable boost in recent years. According to a recent survey, the total number of online shoppers worldwide rose from 1.32 billion in 2014 to 2.05 billion in 2020. Furthermore, in a recent study, it was seen that the value of online transactions on e-commerce websites made through credit cards was $10 billion whereas, in case of debit cards, it was $8 billion. It shows that buyers prefer to use a credit card for higher-end online purchases.

There are several reasons why customers prefer credit card online shopping which has been elaborated below –

Offers and benefits –

Almost all credit cards come with reward programmes. Cardholders can earn reward points on shopping online with their credit cards which can be redeemed for cash back, discounts, etc.

  1. Reward points – One can accumulate reward points on transactions with their credit card. However, it is dependent on how much you spend on every purchase. For instance, you may earn one reward point on a purchase of Rs.1000 with your credit card.

However, this amount may vary based on the card issuer and the credit card you opted for. One can use these accumulated reward points while purchasing products online in future. Hence you should know how to redeem your credit card reward points to enjoy such perks.

  1. Discounts – Furthermore, customers can also shop online from partner stores with their credit cards to avail lucrative discounts, and gift vouchers on purchase of a wide range of products.
  2. Cash back – One can also avail cashback of up to a certain amount on purchasing from partner merchants. All these reward points, discounts and cash back will add up and facilitate users to save a substantial amount annually.

Some credit cards also allow users to convert their credit card purchases into affordable EMIs which can enable them to purchase big-ticket items without straining themselves financially.

Enhanced security features –

The rise of e-commerce sites and online shopping has also led to the growth of fraudulent activities. Since these sites depend on electronic transactions, for the most part, customers also need to enter sensitive information on these sites such as their Email ID, contact number, credit card and debit card details, etc. Moreover, some online shopping sites also allow users to save their login credentials as well as credit card information on their website.

Hackers and other cybercriminals can compromise the safety of this information through a variety of methods like phishing, identity theft, and so on. Consequently, they can carry out payment frauds which include unauthorised transactions, theft of products, etc. Apart from these, you should also learn about other types of credit card fraud and how you can avoid them.

Accordingly, a shopping credit card comes with robust security features such as ‘in-hand security features’ and ‘zero-fraud liability cover’ to minimise the risk of cybercrimes while shopping online.

Application procedure for credit cards to facilitate ease of online shopping –

To apply for a shopping credit card online and continue undeterred online transactions you can follow the steps below –

  1. Visit your credit card company’s official website.
  2. Browse through the different types of credit cards and compare their features and benefits.
  3. After you have selected a card that will meet your financial needs, check the eligibility criteria to make sure you satisfy all the requirements.
  4. Click on ‘Apply’ and enter the requisite details.
  5. Verify the information entered and make sure that there are no errors.
  6. After verification, submit the application form along with all the essential documents.

Lenders also provide pre-approved offers on credit cards for a hassle-free application procedure. Besides credit cards, such offers can be availed on other financial products like business loans and personal loans as well. You can check your pre-approved offer by entering your name and contact information.

Nonetheless, before you opt for a credit card for online shopping, you should have a thorough idea of the charges associated with such cards, like joining fee, annual maintenance fee, late payment fee, foreign maintenance fee, interest charges and so on.

Personal Loan or Credit Cards – Which one Should You Choose for Shopping?

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