We all have our own way of paying for things we buy. While some of us like using coins or cash, others prefer new payment platforms like Apple Pay. Others have used credit cards for online transactions for as long as they can remember.
Apart from earning many travel rewards like hotel points and airline miles when they use credit cards, they also reap many other benefits by just using their credit cards for online transactions.
Which payment method do you prefer when making online transactions? Let us look at some of the reasons why you should use your credit card instead of other modes of payment.
Credit Cards Offer Payment Protection
If you look at different online payment platforms such as PayPal, you will realize that they provide certain types of payment protection. However, you should be careful since some of them do not offer any at all.
Some of them might require you to dispute a transaction and then wait until investigations are completed. Disputing a transaction does not mean you will get a refund since fraud can come from the seller or buyer.
However, credit cards have a better payment protection mechanism. If you are scammed using your credit card, you will often be refunded immediately. Most providers take the side of their customers instead of retailers. They can also detect fraud automatically before their users even know about it.
They Provide Additional Warranties
Sometimes, you might buy a physical product, such as a laptop, online. If you pay for this product using your credit card, you might end up getting an additional warranty. However, the product should also have a manufacturer’s warranty.
If the credit card you use to make the payment is eligible, you will not only get the manufacturer’s warranty but also an additional warranty from your credit card provider. This warranty is referred to as an extended warranty.
These warranties are popular with products such as furniture, household goods, electronics, and other large purchases. You will find this warranty very useful, especially when buying items that are expensive and difficult to repair.
They Offer Purchase Protection
Yes, you heard that right! Did you know you can get purchase protection when you buy items online and pay for them using your credit card? Let us assume that you are shopping for a new washing machine.
You find one on an online store and place an order. The payment is made using your credit card. Unfortunately, the washing machine was damaged immediately after buying it. Should you start counting losses?
No, you should not, but only if you paid using a credit card. You will instead get a full refund. You can also get price protection with some credit cards. If, for instance, you realize that the price of a laptop you bought online goes down after purchase, you will get refunded the difference.
Your Bank Account is Not Affected In Case of Fraud
You can use your debit card for online payments, just like you use your credit cards. No one will hang you for doing that. However, if you have a credit card, then make sure that you have avoided using debit cards as much as you can.
If, for instance, you are scammed, and someone steals your debit card or just its number, you can have your bank account emptied very fast. On the other hand, if you lose your credit card or its number, your credit line is the only thing that can be accessed.
Do you know how someone can access the details of your credit or debit card? Cybercriminals have many ways of doing that. They can create a malicious website that captures data. You can also be a victim of online identity theft. Someone might also install a keylogger on your laptop. You, therefore, need to be careful to protect yourself.
They Provide Cashback Offers
Just like almost every other industry, the credit card industry is very competitive. If you work in this industry, you understand how you have to look for many ways to lure customers to keep using your credit cards.
One of these ways is through cashback offers. With this offer, you can get a certain percentage of cashback on all the purchases that you make. You might also get significant rates if you make purchases at certain stores.
Unfortunately, most credit card providers offer a very small cashback rate. The good news is that this is going to add up over a period of time. You can use this money to pay back your loans or for anything else that you want.
Credit Cards Have Grace Periods
We all have a monthly service that we have to pay for. What do you use to pay for your monthly service? Did you know you stand to gain if you used your credit card to pay for these services?
Well, you can use your online wallets or debit cards. However, these payment options will only work if you have money in your accounts. This is something you do not have to worry about if you use a credit card.
Whether you have money in your account or not, your payment will go through if you use a credit card. You can also get a grace period, often 30 days, during which you are not charged any interest. This means you can pay for your online services every month, even if something went wrong and you cannot access your account.
What do you use for online transactions? As you can see above, you stand to gain a lot from using your credit cards. As much as you can use other payment options, credit cards are the best bet.