Why Pay via Credit Cards for Shopping Online?

In the past few years, India has witnessed an unprecedented boom in the e-commerce industry. With the rapid increase in the number of e-commerce platforms, the competition amongst online shopping websites is immense. To attract more customers, they offer excellent deals and discounts on making payments through Credit Cards, particularly on top lifestyle brands. As a result, more and more customers are using multiple cashless payment methods to pay for their online purchases.

Amongst all modes of digital payments, Credit Cards have been one of the most popular ones in the market. Thus, more and more banks are also offering multiple discounts & cashback offers to customers who apply for credit cards. Besides, it has become completely hassle-free to avail of a Credit Card today. For instance, you can now apply for SBI Credit Card with just a few taps on your smartphone or through the online application portal of SBI.

Here are some of the major benefits and facilities you can avail by paying via Credit Cards for online shopping:

• Great Discounts: Many e-commerce portals offer great deals and discounts on making payments through Credit Cards. These companies have tie-ups with various Credit Card issuing companies and offer incredible discounts when you make payment for your online purchase through a specific Credit Card. These discounts are over and above the running offers and thus make use of card payments far more attractive.

• Additional Cashback: One of the most amazing benefits of using Credit Cards to make payment for shopping online is an additional cashback you get. Whether it be booking for air tickets or hotels, buying a smartphone, or heavy electronics, many e-commerce platforms provide great cashback offers when you make payment through your Credit Card. These cash backs are even higher during festive seasons, allowing you to purchase products you have always desired. Cashbacks can be provided in the form of an instant discount or can also be credited to your Credit Card account after a specified period. In any case, using Credit Card for online shopping makes your shopping experience even sweeter.

• Instant EMIs: Another benefit of using your Credit Card for online shopping is the facility of instant EMIs against your Credit Card. There is no need to apply for a Personal Loan to finance your purchase when you have a Credit Card with sufficient credit limit available. Most e-commerce portals support the facility of Credit Card EMIs. Herein, the limit of your Credit Card is blocked up to the total purchase cost. The total cost is divided into EMIs, as you have opted, and then every month, you need to repay the EMI, and your credit limit will be opened up accordingly. Therefore, you can purchase the desired products immediately without any need to make a lump-sum payment.

• Bonus reward points: Many Credit Card companies offer additional reward points when you purchase an e-commerce portal with your Credit Card. These bonus reward points are added to your existing reward points and can be redeemed as per the plans offered by the Credit Card Company. For instance, the reward points available vary depending on the types of SBI Credit Cards that are available with the customer. Though, to make the most of this benefit, you need to identify the online shopping site that offers the highest bonus reward points.

• Interest-free period: As you must know that depending on the type of Credit Card you use, the interest-free period can vary between 30 to 50 days. By planning your purchases on e-commerce websites, you can maximize the benefit of the interest-free period. You should always make high-value purchases towards the beginning of the billing cycle, as it will allow you the maximum number of interest-free days against your purchase. By lowering your interest expenses, you can maximize the benefits of your Credit Card.

• Manage your cash flow: Using a Credit Card to make payments at e-commerce sites can help you manage your cash flow more efficiently. Be it a wedding purchase or a festival purchase, you may require an additional amount to make most of these events. With a Credit Card in hand, you need not wait for your paycheck to arrive or your outstanding payment to be realized. You can use the card to make the purchase instantly. As you get up to 50 days of the interest-free period to make the repayment, you can easily plan the bill payments without affecting your personal financials.

• Easy refunds: If you need to return the products you have purchased on an online shopping website with your Credit Card, the refund process is relatively seamless. The website will initiate the refund, after they receive the returned product, to the mode of payment you originally chose. As you have made the payment with your Credit Card, the amount would be refunded to your Card and will reflect in the next billing cycle. Therefore, you get instant refunds and can use the money as and when you require, instead of being forced to get a refund in the form of store credits and then having to use them only on that particular website.

These are some of the major benefits on offer when you pay for online shopping with a Credit Card. Therefore, you must consider using your card the next time you feel like making a purchase online.