Pros and Cons of Online Shopping With and Without Credit Card



The number of POS or Point of Sales jumped to 3.99 million in June 2019 from its 3.31 million the last year. This 20.5% boost could be the key impediment leading to the transformation of the previously cash-reliant Indian economy towards becoming increasingly cashless. Subsequently, the second quarter of 2019 witnessed an average size of the POS terminals for credit cards to be about INR 3,423 for credit card transactions. Along these lines, the recent 49 million credit card in circulation might well be owing to the –

Expanding retail borrowers,
Leaning towards digital payments, and
Increased preference given to online shopping platforms.

Consequently, the Indian e-commerce industry is predicted to surpass the US and become the second-largest in the world by 2035. Subsequently, online buyers are showing more inclination towards shopping credit cards for online purchases to bring in the ease of payment and owing to its credit card offers.

Be it big-ticket expenses or daily spending, a credit card can cater to all the requirements and offer additional benefits. 

However, before opting for a credit card online it is vital to weigh out the pros and cons of shopping with and without the credit card and then make an informed decision, viz. –

Shopping with a credit card

a) Pros

Reward points: Almost every transaction via credit cards can help earn reward points that can be redeemed later against cashback, vouchers, discounts, etc.

Increased purchasing power: Gain access to a wider purchasing power worldwide considering that these payment cards are accepted anywhere, virtually.

Build credit score: Make timely payment of your outstanding bills and strengthen your CIBIL score. Additionally considering that you avail Bajaj Finserv RBL Bank SuperCard, you can repay the bill in three easy EMIs.

Additionally, existing borrowers can enjoy the benefit of pre-approved offers from Bajaj Finserv that ease the application process to avail such financial products. These offers are also available on multiple other credit-based products including business loans, personal loans, etc. You can take a look at your pre-approved offers by providing only a few essential details like your name and contact number.

Boosted financial security: With built-in fraud protection, online transactions are the safest with credit cards. With no direct access, credit card frauds come with lower risks of financial loss and are often hastily addressed and resolved. Also, credit card transactions can be reversed in case they are unauthorised and if the card issuer is reported on the same within 24 to 48 hours of the incident.

Access to an emergency line of credit: Considering that you have opted for a suitable card, your credit card offers you with an emergency line of credit that comes with a grace period of –

90 days in case you avail loans against the outstanding amount.
50 days in case of ATM cash withdrawal.

b) Cons

With credit cards, woes on its cons can only surface in case of misusing it. Considering that use your credit card wisely and follow some basic usage habits, you can avoid financial burdens in the form of interest or other charges. 

Tip 1: Make timely payment of bills.
Tip 2: Pay a minimum of the outstanding bill.
Tip 3: Check the credit card statement regularly.
Tip 4: Limit your spending to within 50% of the credit utilization ratio.

Without credit card

a) Pros

Without access to a higher purchase limit, a restraint on the spending can help avoid overspending.

b) Cons

Missing out on accelerated reward points from partner retail stores: Consider this, your purchases at your preferred store could fetch you reward points and bonus points that you can later redeem into cashback, discounts, or vouchers if you use a credit card. These credit card offers are one of the significant benefits of using these payment tools.

Higher risks of financial loss in case of online transactions: In case of online transactions via other payment cards, like debit cards, a transaction once made cannot be reversed.

Subsequently, the leverage of credit cards for online shopping ensures that SuperCard is the smart way to shop online. Additionally, availing of credit cards is convenient considering its minimum eligibility criteria and documentation, and streamlined application process to avail credit card online.
Pros and Cons of Online Shopping With and Without Credit Card Pros and Cons of Online Shopping With and Without Credit Card Reviewed by Steve on March 17, 2020 Rating: 5
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