Reasons To Use a Credit Card When Shopping Online
In the current day and age, the majority of most shopping is done in bulk online. People surf the internet for next year’s Christmas gifts and others might look online for meal deliveries. Others might look at places like eBay for things that can’t be found in most other places.
Regardless of where you spend your cash, the important part is where you use your debit or credit card for purchases. While debit cards are convenient, here are a few things that make credit cards better for online purchases:
1. Fraud Prevention
With all the new ways there are to hack and breach secure firewalls, it is important to protect your assets and identity. Many major credit cards offer other services in addition to monitoring your account.
You can add a layer of security to your documents by signing up for a credit card. Stated on Discovery’s website, their mission statement says “Using a credit card provides an extra layer of protection against fraud and it makes getting a refund easier.
If a site fails to meet the minimum safety requirements, a company’s plan will protect your financial assets by not allowing a transaction to go through.
And if your credit card is lost or stolen for any reason, you can be absolved of liability as long as you respond quickly.
2. Earn Rewards
With a debit card, your money is deducted from the corresponding account and that’s it. But with a credit card, depending on the issuing institution, you can gain a number of rewards or cash back options when making a credit card purchase.
Some cards offer either cash back option or points to put towards travel packages, and others may offer both. If you are lucky, you may be able to earn even more points through online purchases.
A few programs may offer their customers 3 points per $1 spent on a purchase, as opposed to the more common 1 point per $1 spent.
3. Less Risk
With a debit card, your information is extremely vulnerable if your card is lost. A thief with minimal info about your debit may gain access to every cent sitting in your checking account. They are then free to spend your hard-earned cash as they see fit.
Things are a little different with a credit card. Thanks to companies that like to build ‘brand loyalty’ with customers, disputing strange purchases is much easier now than in the past.
As mentioned above, credit card companies will usually offer their consumers a variety of protections. Those include, but are not limited to:
- Price Protection – Covers you if a product is available for a lower price than you paid.
- Purchase Protection – Covers your purchases against damage or theft.
- Extended Warranty Coverage – Automatically extends the manufacturer’s warranty on a product.
While there are limits to the protections a company can offer, it’s nice to have them available should the need arise to utilize them.
5. Greater Federal Protections
While the FDIC (Federal Deposit Insurance Commission) covers money deposited into a checking account, protections for credits cards are a little better in. The Fair Credit Billing Act limits liability for unauthorized purchases to $50 in-person or online, so long as the cardholder files a report within two months.
Because debit cards take the money directly from your bank account, disputing fraudulent transactions is far more difficult. If a fraudulent purchase is not brought to attention within two days of happening, you’ll end up on the hook for $500.
6. Easier Time Disputing Charges
Thanks to companies’ desire to instill customer loyalty, many make dispute resolution very easy. On Discover’s blog, they state “When you pay with your credit card, you may have the ability to withhold payment or dispute a charge if there is an issue with your purchase.”
When and if you find it necessary to dispute a charge, most companies will take charge of investigating exactly what’s going on your behalf. Remember to contact them as well if you find anything odd or broken the next time you’re out checking the mail.
7. Universal Acceptance
Credit cards make hotel reservations and car rentals far easier than if one were to use a debit card. If your purchases are made with a debit card, you may end up with a hold on hundreds of dollars, waiting days for it finally go through.
One of the best things about credit cards is that many can be used to make purchases in foreign countries.