As per a 2018 joint study conducted by ASSOCHAM and
Resurgent, the number of online shoppers in 2017 was 108 million. Amongst them,
the most preferred mode of payment was cash on delivery at 74% followed by
debit cards at 18%, and credit cards at 5%.
The share of credit cards is the lowest as the number of cardholders is also
considerably low as compared to debit cards. This is because the majority of
individuals believe that a credit card requires them to pay high interest
rates, thus, making them go into higher debts.
However, if
managed well, users can avoid paying such interests and also reap the
attractive benefits of credit cards which debit cards and cash on delivery
don’t provide.
Here are a few
reasons why you should use credit cards for online shopping:
Reward points
Reward points
Reward points
are the primary benefits that credit cards mostly provide. You earn reward
points with every transaction you make online. Not just online shopping but you
can earn these points for making other purchases as well.
The
ASSOCHAM-Resurgent study found that around 17% of online ticket buyers use
credit cards to make the payments.
You can then
redeem these accumulated points to avail discounts on future purchases or reduce
your card bill by opting for a cashback.
Some credit
cards provide double reward points for online transactions as compared to
offline ones. You can get bonus reward points on reaching monthly and yearly
milestones as well. Few companies even provide reward points when you apply for a credit card.
For example, Bajaj Finserv RBL Bank SuperCard provides up
to 20,000 rewards points as a joining bonus. The card also comes with
pre-approved offers that make availing finance less complicated. Pre-approved
offers are additionally available for personal loans, home loans, business
loans, and several other financial products.
EMI purchasing
EMI purchasing
Another superb
benefit of using credit cards to shop online is EMIs. You can convert your
expensive purchases into easy EMI only by using credit cards.
Some companies
also provide No Cost EMIs which refrain you from paying any interest on EMIs as
compared to the traditional ones.
Grace period
Grace period
The grace period is the time you get to pay your credit card bill. This
is also called the interest-free period as you don’t have to pay any interest
on your expenses during this time.
Generally, companies provide a grace period of up to 45 days. Thus, you
get ample time to clear your bill and avoid accruing high interests.
More security
More security
Credit cards
come with added security as compared to debit cards. For instance, the RBL super credit card comes with “zero-fraud liability
cover” and “in-hand security”.
Such security
features enable you to get your money back in case someone makes an
unauthorised transaction with your card. You won’t get such security measures
with a debit card.
Easier dispute resolution
Easier dispute resolution
Your account is
charged instantly when you pay with a debit card online. You will be able to
get a refund if the product you received is not what you ordered for. However,
it may take up some time and also involve considerable hassle in some cases.
On the other
hand, you can raise a complaint with your credit card company and get a
chargeback. They can also investigate the matter if it is severe.
Better budget planning
Better budget planning
Credit cards
can help you plan your monthly budget more easily. Keep a track of all expenses
you make online and also curb the unnecessary ones.
Remember the following points when using your credit card:
- Keep your credit utilisation within
30-50% of your maximum limit. Exceeding this limit will lower your credit
score.
- Always pay the total
amount due and not the minimum one. Doing otherwise can also reduce your
credit score.
Use your credit cards responsibly and you can make your online shopping more rewarding and worthwhile
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