Cash, checks, debit cards and credits cards are the popular modes of payments used today. While the first three modes of payment have their own merits and disadvantages, let me share with you why a credit card is the best way to pay for your online purchases.
Credit card offers dispute rights. You are less vulnerable when you use a credit card online because you can easily dispute a charge for something that you haven’t bought, an undelivered product or other reasons allowed by your card issuer. When you pay by cash or check, it’s usually hard to recover your money once its already in the hands of others.
Online merchants use credit card processing services that makes it easier to pay for something that you purchased. Supplying the details that they need for online verification is like swiping your card in the POS systems of the merchants, you can already proceed with the check out process. When you pay by cash or check, you usually have to find a way to deliver your payment either in person, through mail or by other means – plus, they can get lost.
Credit card companies often give you rewards for purchasing through your credit card. You can use these points to redeem cool gadgets, cash and other rewards.
Extra Time to Pay
Compared to cash and debit cards, you get extra time to pay for your purchases when you use a credit card. You charge a purchase now and you get to pay it on your next month (depending on where you’re at in the billing cycle). If your money is in an interest-bearing account in the bank, you can still earn some interest income on that one.
Increasing Your Credit Score
Most institutions report your credit card activities to the credit reporting agencies so using a credit card properly and responsibly can have good effect on your credit score.
These are just few of the reasons why you should use your credit card for online purchases. Can you think of other ways on how credit cards are more advantageous when buying online? Please feel free to share your thoughts in the comment section.