Online shopping is very popular these days with about 350 million people who actively shop online. India’s e-commerce market is expected to grow rapidly in the coming years. To get the maximum benefits out of online shopping, credit cards play a big role. Various credit cards offer customized features, rewards, exclusive discounts, cashback on purchases, and additional perks on shopping online. Let us now review some of the best credit cards for online shopping in 2024.
Top Credit Cards for Online Shopping in 2024
The festive season is here but everyone is busy that offline shopping has become a hectic task. Especially when top banks are offering great deals on online shopping through credit cards, who would not want to buy online? So, have a look at the credit card offers on best credit cards and shop online!
|
Credit Card |
Key Benefits on shopping |
Joining fees |
Annual/Renewal fee |
|---|---|---|---|
|
5% cashback on all online spends and 1% cashback across all offline spends |
Rs. 999 |
Rs. 999 |
|
|
Get up to 5% cashback on Amazon purchases Get 1% cashback across all offline spends |
Nil |
Nil |
|
|
Gain up to 8X reward points on your purchases |
Rs. 1,999 |
Rs. 250 |
|
|
Get 10% savings on departmental and grocery transactions. |
Rs. 1,499 |
Rs. 749 |
|
|
Get a cashback of 2% on all other purchases |
Rs. 499 |
Rs. 499 |
|
|
HDFC MoneyBack+ Credit Card |
Earn 10x cashpoints on popular brands like Amazon, BigBasket, and more. Earn 5x cashpoints on EMI spends made at merchant locations. |
Rs. 500 plus applicable taxes |
Rs. 500 plus applicable taxes |
|
Get a cashback of 5% on Amazon, BookMyShow, Flipkart, Myntra, and more. Get a cashback of 1% on all other spends except fuel, wallet, government transactions, and EMI |
Rs. 1000 plus applicable taxes |
Rs. 1000 plus applicable taxes |
|
|
Get a discount of 20% on shopping at Myntra with no minimum spends criteria Get 10% off on grocery shopping with no minimum spends Get 10% off on Zomato food orders with no minimum spends |
INR 49 per month |
INR 49 per month |
|
|
Get up to 40% off on top brands like Zomato, Blinkit, and Myntra. |
Rs. 250 |
Rs. 250 |
|
|
Earn 10x rewards on online spends with partners such as BookMyShow, ClearTrip, Yatra, Swiggy, etc. Get 5x reward points on all other spends made online. |
Rs. 499 plus taxes |
Rs. 499 plus taxes |
|
|
American Express SmartEarnTM |
Get 10x membership reward points on popular brands like Zomato, Flipkart, Blinkit, Myntra, and more. Get 5x membership reward points on each Rs. 50 spent on Amazon. Get 1 membership reward point for each Rs. 50 spent on other categories. |
Rs. 495 plus taxes |
Rs. 495 plus taxes |
|
HSBC Live plus Credit Card |
Get a cashback of 10% (Up to a maximum of Rs. 1,000/month) on dining, grocery, and food delivery.
Get unlimited cashback of 1.5% on other spends. |
INR 999 |
INR 999 |
|
5% cashback on transactions at Flipkart and Cleartrip
Get 4% cashback on partner merchants, like Swiggy, PVR, Uber, etc. (Partner merchants are subject to change from time to time) |
Rs. 500 |
Rs. 500 |
|
|
Enjoy 10 reward points per Rs. 150 spent on dining, movies, grocery spends, and departmental stores.
Earn 1 reward point per Rs. 150 spent across other categories. |
Rs. 499 plus taxes |
Rs. 499 plus taxes |
|
|
Get an instant discount of 10% on Flipkart from 1st to 5th of every month. Get an instant discount of 5% on Flipkart from 6th to 31st of every month. Get 3x reward points on online spends |
Rs. 750 |
Rs. 750 |
Credit Cards for Online Shopping in 2024 - Key Highlights
Cashback SBI Card
This card is a great pick for shopping since it offers accelerated benefits. The card comes without any merchant restrictions and users can earn rewards on all online spends regardless of the brand. So, enjoy a rewarding life with this rewarding credit card.
Key Highlights:
- 5% cashback on online spends without any restriction on merchants
- Get a cashback of 1% on offline spends
- The cashback will be credited automatically to your account within 2 working days of your next statement generation.
- Get a waiver on renewal fee on reaching milestone spends of Rs. 2 lakhs.
- Get a fuel surcharge waiver of 1% on transactions between Rs. 500 to Rs. 3000 across petrol pumps in India.
Amazon Pay ICICI Bank Credit Card
This co-branded card rewards you sumptuously on Amazon shopping whether you are a prime member or not. Not only does it provide cashback on shopping with Amazon but also on other popular brands. Overall it is a great card to adorn your wallet.
Key Highlights:
- Earn a cashback of 5% on your spends on Amazon India if you are a member of Amazon Prime.
- Non members can earn a cashback of 3% on spends on Amazon India.
- Earn a 2% cashback on payments made to 100 plus partner merchants.
- Earn 1% cashback on other expenses such as shopping, dining, insurance payments, travel, and more.
Kotak Delight Credit Card
The Kotak Delight credit card provides cashback on spends across various categories like dining, movies, fuel, etc. Delight yourself with rewards by using this card.
Key Highlights:
- Get a cashback of 10% on dining spends of more than Rs. 10,000 in categories other than dining and entertainment. The maximum cashback that users can obtain is Rs. 600 in a billing cycle. The earned cash back limit is divided between dining and entertainment spends.
- Get a cashback of 10% on movies by spending more than Rs. 10,000 in any category except dining and entertainment within a billing cycle.
- Earn a fuel surcharge waiver of 1% on transactions in the range of Rs. 400 and Rs. 4000 (Subject to a maximum of Rs. 4500).
- Get 4 free PVR tickets or Rs. 750 as cashback on spending Rs. 1,25,000 every 6 months.
Kotak Essentia Platinum Credit Card
Create a treasure house of savings with this card which enables you to save on groceries, departmental stores, milestone spends, and each and every spends made across various categories. Apply for this card and enjoy the benefits instantly.
Key Highlights:
- Earn 10 saving points per Rs. 100 spent at grocery and departmental stores on transactions in the range of Rs. 1500 and Rs. 4000 (Subject to a maximum of 500 points).
- Earn 1 saving point per Rs. 250 spent on other categories.
- Earn 6 PVR tickets or 1200 saving points on spends of Rs. 1.25 lakhs every 6 months.
- There are multiple options to redeem the saving points like airline tickets, cash, air miles, movie tickets, mobile recharges, and merchandise. To redeem the saving points, users should convert them into 1 saving point = 2 easy points.
Axis Bank ACE Credit Card
Enjoy a world of cashback with the Ace credit card from Axis Bank. It not only offers cashback on shopping with popular brands like Swiggy and Zomato but also on bill payments, mobile recharges, DTH, and all other spends.
Key Highlights:
- Get a cashback of 5% on bill payments (Electricity, internet, gas, and more), mobile recharges, and DTH on Google Pay.
- Get a cashback of 4% on Swiggy, Zomato, and Ola.
- Earn a cashback of 1.5% on all other spends
- Enjoy 4 complimentary lounge visits per year at the laid down list of domestic airports.
- Get a fuel surcharge waiver of 1% on all fuel purchases in the range of Rs. 400 to Rs. 4000, subject to a maximum of Rs. 500 per statement.
- Enjoy up to 15% off at 4000 plus partner restaurants.
HDFC MoneyBack+ Credit Card
The HDFC MoneyBack plus credit card gives great benefits on shopping across renowned brands like Amazon, RelianceSmart, BigBasket, etc. Apart from these, enjoy an ocean of perks across travel, dining, hotel and flight bookings etc. with this all round card.
Key Highlights:
- Earn 10x cashpoints on popular brands such as Amazon, BigBasket, RelianceSmart, Swiggy, and SuperStore.
- Earn 2 cash points per Rs. 150 spent on other categories (Excluding EMI, fuel, prepaid card loads/wallet loads, and voucher purchases )
- Get a gift voucher worth Rs. 500 on spends of Rs. 50,000 per quarter.
- Get up to a discount of 20% on partner restaurants through Swiggy Dineout.
- Get up to a savings of 20% on all restaurant bill payments across 20k + restaurants through Swiggy DineOut (Offer valid only on payments made through the Swiggy app).
- Get a fuel surcharge waiver of 1% on transactions between Rs. 400 to Rs. 5000 (With a maximum waiver of Rs. 250 per statement cycle).
- Get a welcome benefit of 500 cash points applicable only on paying the membership fee.
- Get a gift voucher worth Rs. 500 on spends of Rs. 50,000 or more. Earn up to Rs. 2,000 worth gift vouchers in a year.
- Cashpoints can be redeemed against travel benefits like flight and hotel bookings, rewards catalog, and the statement balance. 1 cashpoint = Rs. 0.25.
HDFC Millennia Credit Card
This card is especially curated to cater to the needs of millennials who enjoy shopping online and want to get rewarded for their spends. The card offers a cashback of up to 5% on online transactions and 1% on all offline spends. The cashback is credited in the form of cash points, and these can be redeemed against credit card statements in the ratio of 1:1.
Key Highlights:
- Get 1 complimentary lounge access or a voucher of value Rs. 1,000 on spending Rs. 1 lakh in a quarter.
- Get up to 20% off on dining at partner restaurants via Swiggy Dine Out.
- Get a fuel surcharge waiver on transactions in the range of Rs. 400 to Rs. 5000.
- Get a 5% cashback on Amazon, BookMyShow, Cult.fit, Sony LIV, Swiggy, Flipkart, Myntra,, Tata CLiQ, Zomato, and Uber.
- Earn a cashback of 1% on other categories including wallet and EMI spends.
- Get 1 complimentary lounge access or a voucher worth Rs. 1,000 on spends of Rs. 1 lakh in a quarter.
- Get a 1% fuel surcharge waiver (Up to a maximum of Rs. 250 per month) on transactions in the range of Rs. 400 to Rs. 5,000 across all fuel stations in India.
Standard Chartered DigiSmart Credit Card
The Digismart credit card is a great card to have for those who love brand shopping. The card provides great discounts on renowned brands like Yatra, Zomato, Myntra, domestic hotel bookings, Grofers, Inox, etc. So brand lovers, you are just a step away from your most loved brand delights.
Key Highlights:
- Get a 20% off at Myntra with no minimum spends. You can get a maximum discount of INR 700 and the validity is 1 transaction per month.
- Get a 10% discount on Zomato orders with no minimum spends. This discount is applicable on 5 transactions per month with a maximum discount of INR 150 per transaction.
- Get a discount of 20%, subject to a maximum of INR 750 on booking domestic flights at Yatra.
- Get a discount of 10%, up to INR 10,000 at Yatra on international flight bookings.
- Get a discount of 25%, up to INR 4000, on domestic hotel bookings. Valid for 1 transaction per quarter per category.
- Get 10% off on grocery shopping at Grofers with no minimum spends. This offer is valid for 5 transactions per month with a monthly maximum discount of INR 1,000.
- Buy One Get One (BOGO) movie ticket free at INOX on weekends for 2 transactions per month, subject to a maximum discount of INR 200 per transaction.
- Get a cashback of 15% on your Ola Cab bookings with a maximum cashback of INR 600 per month.
Axis Bank Neo Credit Card
This credit card offers discounts on online purchases at top brands like Zomato, BookMyShow, Myntra, Blinkit, and more. Apart from these, the users can also accrue base reward points across all buys.
Key highlights:
- Get 40% off up to Rs. 120 per order on food delivery via Zomato, subject to a minimum order value of Rs. 200.
- Get 5% off on recharges and bill payments done via Amazon Pay.
- Get 10% off on Blinkit (Up to Rs. 250) once per month.
- Get a bonus of Rs. 150 off on Myntra orders worth Rs. 999 and above.
- Get a cashback of 100% (Up to a maximum of Rs. 300) on the first utility payment made within 30 days of issuing the card.
- Get 1 EDGE reward point per Rs. 200 spent.
SBI SimplyClick Credit Card
This card is one of the most desired in the market. It is a great choice for those who shop a lot online. This is because it comes with a low annual fee and simple eligibility. It offers reward points on online shopping with popular brand partners and other spends also.
Key highlights:
- Get an Amazon.in gift card of value Rs. 500 on paying the annual fee of Rs. 499 plus taxes.
- Earn 10x reward points on spends with popular brand partners like Swiggy, Yatra, Apollo 24/7, BookMyShow, Cleartrip, Dominos, Myntra, or Netmeds.
- Obtain reward points of 5x on all other online spends
- On reaching threshold spends of Rs. 1 lakh and 2 lakhs every anniversary year, receive an e-voucher for each milestone from Cleartrip or Yatra. The value of each voucher is Rs. 2000.
- Get a fuel surcharge waiver of 1% for each transactions in the range of Rs. 500 and Rs.3000 (Excluding GST, wherever applicable and all other charges).
- You do not have to pay the annual fee for the year on reaching the spends threshold criteria of value Rs. 100,000 in the previous year.
American Express SmartEarnTM
This credit card is especially designed for people who frequently shop online. It is most suited for entry level credit card users since it helps you accrue reward points on every purchase. It also helps in providing those additional perks such as fee waiver, gift vouchers, bonus cashback, and more.
Key Highlights:
- Earn 1 membership reward point per Rs. 50 spent on other categories.
- On achieving milestone spends of 1.20 lakhs, 1.80 lakhs, and 2.40 lakhs, get a voucher worth 500 on each.
- Get a convenience fee of 1% on fuel purchases more than Rs. 5000 across HPCL petrol pumps
- Get 10x membership reward points on popular brands like Zomato, Flipkart, Blinkit, Myntra, Uber, Ajio, Nykaa, PVR, BookMyShow, and more
- Get 5x membership reward points on each Rs. 50 spent on Amazon.
- Get 1 membership reward point for each Rs. 50 spent on other categories.
- Get a cashback of Rs. 500 on spends of Rs. 10,000 in the first 90 days of card issuance.
HSBC Live Plus Credit Card
Delight in a sea of cashback with this credit card. It offers cashback on shopping across a wide range of categories such as groceries, movies, food, etc. It also gives other benefits in the form of gift vouchers, airport lounge visits, etc.
Key Highlights:
- Get a cashback of 10% on groceries and an unlimited cashback of 1.5% at other retailers.
- Earn unlimited cashback of 1.5% on watching movies and shows at home or at the cinema.
- Feel thrilled with unlimited cashback of 1.5% across select categories in India and when traveling abroad.
- Enjoy up to 15% off with the Live + Dining programme
- Get a cashback of 10% on dining and food delivery spends.
- Get 4 complimentary domestic airport lounge visits per year.
- Get a welcome cashback of INR 1,000 on spends of INR 20,000 within the first 30 days of card issuance.
- Get an Amazon e-gift voucher worth Rs. 250 when you online apply for the card and complete your video KYC.
- Get 20% off on purchases of INR 3,000 and more at Myntra when you pay with your HSBC Live+ Credit Card.
Validity: This offer on Myntra is valid until December 31st 2024
Flipkart Axis Bank Credit Card
If you are in love with the brand Flipkart and are a loyalist, then the co-branded credit card between Flipkart and Axis Bank is the best pick for your wallet. Not just this, the card also gives you cashback on other categories. Swim in the ocean of unlimited cashback by shopping with the Flipkart Axis Bank Credit Card.
Key Highlights:
- Get Rs. 600 worth of welcome benefits
- Earn an unlimited cashback of 5% on spends made on Cleartrip and Flipkart.
- Earn an unlimited cashback of 4% on preferred merchants like Cult.fit, PVR, Swiggy, and Uber
Note: The preferred partners are as of date when this page was written and are subject to change from time to time.
- Get an unlimited cashback of 1% on other eligible categories.
- Enjoy 4 complimentary lounge visits to select airport lounges within India on spends of Rs. 50,000 within the previous 3 months.
- Get a fuel surcharge waiver of 1%, up to Rs. 400 per statement cycle, on fuel transactions in the range of Rs. 400 and Rs. 4000
- Get 15% off up to Rs. 500 with EasyDiner at 10,000 plus partner restaurants across India.
SBI SimplySave Credit Card
Enjoy abundant rewards across various categories like groceries, movies, and departmental stores. Not just this, this card rewards you on every spend. So shop more and simply save more with this credit card.
Key Highlights:
- Enjoy 10x reward points on dining, groceries, movies, and departmental stores.
- Get activation bonus reward points of 2000 on spends of Rs. 200 or more within the first 60 days.
- Enjoy 10 reward points per Rs. 150 spent on dining, movies, grocery spends, and departmental stores.
- Earn 1 reward point per Rs. 150 spent across all other categories.
- You can redeem the reward points @ 4 reward points = Re 1.
- Get a fuel surcharge waiver of 1% on transactions between Rs. 500 to Rs. 3000 across petrol pumps in India.
- Get an annual membership fee reversal on reaching milestone spends of Rs. 100,000 or more in the previous year.
Axis Bank Buzz Credit Card
This card is a great pick for Flipkart shoppers. It offers you instant discounts on shopping with the e-commerce giant. Not just this, the card offers you a Flipkart gift voucher as a welcome perk and also on reaching milestone spends. The card also gives you rewards on all other online spends.
Key Highlights:
- Get a Flipkart gift voucher worth Rs. 1000 on making 3 purchases within 45 days
- Get an instant discount of 10% on Flipkart from 1 to 5th each month
- Get an instant discount of 5% on Flipkart from 6th to 31st.
- Get Flipkart vouchers worth up to Rs. 7000 annually. Given below is a list of individual vouchers on reaching milestone spends as shown below:
- Annual spends of Rs. 25,000 - Flipkart voucher worth Rs. 500
- Annual spends of Rs. 50,000 - Flipkart voucher worth Rs. 1000
- Annual spends of Rs. 100,000 - Flipkart voucher worth Rs. 2,500 and Rs. 1,000
- Annual spends of Rs. 200,000 - Flipkart voucher worth Rs. 2,000.
- Get 3x points on online spends.
Types of Shopping Credit Cards in India
- Cashback Shopping Credit Cards: Cashback credit cards are those that return a percentage of the amount spent as cashback. Cards under this category offer cashback on specific brands. So, if you are a brand loyalist, then you can search for such cards. Also, the amount of cashback will vary across retailers.
- Shopping Credit Cards with Accelerated Rewards: Shopping credit cards under this category will give you rewards and gifts. Purchases across a few categories like textiles, cosmetics, accessories, etc will accrue accelerated reward points. These can then be redeemed for discounts, gifts, and other deals offered by the bank.
- Shopping Credit Cards with Discounts: There is a category of shopping credit cards that provide discounts on shopping at specific stores.
Eligibility for Shopping Credit Cards
Here is a list of basic eligibility criteria for shopping credit cards:
- Citizenship: The applicant should be an Indian citizen.
- Occupation: The applicant must be salaried or self-employed.
- Credit History: The person should have a decent credit score and credit history. This however does not apply to first time borrowers.
- Age of the Applicant: The age of the applicant should be minimum 21 years and maximum 60 years.
Documents Required for Shopping Credit Cards
The documents required to apply for a particular shopping credit card will vary across banks and credit card issuers. However, here is a general list of documents.
- Copy of an identity proof such as passport, Aadhaar card, etc.
- Copy of an address proof document which holds your current address, such as driving license, passport, electricity bill, voter’s ID, and Aadhaar card.
- Copy of the PAN card.
- IT returns or salary slips for two months.
- Duly signed application form.
- One passport size photograph.
How to Apply for a Shopping Credit Card?
Through the Bank’s website
You can apply for a credit card online through the website of the bank. Here are the steps to do so
Step 1: Visit the website of the bank.
Step 2: Search for the shopping credit card that you want.
Step 3: Click on the card to access details about the card.
Step 4: Click on the ‘Apply’ button to fill an online application for the same.
Step 5: On the online application page, key in all the necessary details with accuracy. Study and comprehend the terms and conditions before accepting. Then, click on ‘Submit’.
An application reference number will be generated on successfully submitting the application. The bank will take three to four days to evaluate the application. If you fulfill all the eligibility criteria required, then the bank will contact you. The credit card will be processed within seven to ten days of applying. You can then track your application status on the bank’s portal using the application ID.
Through Wishfin
You can apply for the online shopping credit cards, whichever is available through Wishfin. There are no login credentials. All you have to do is go to the Wishfin website and navigate to the credit card section. When you specify the personal and professional details asked for, the quotes of various card offers will be displayed on the screen. You can apply in three ways on Wishfin.
Apply via Form
Step 1: Open the online application form on Wishfin
Step 2: Fill your personal and professional details as asked in the form.
Step 3: Submit the form to process your application.
Apply Through Whatsapp
Step 1: Click ‘Apply with the ease of Whatsapp chat’
Step 2: Enter your mobile number and click on ‘Continue with Whatsapp
Step 3: After that, a link will be dispatched to you. Click this link to get added to a group featuring Wishfin as the other member.
Step 4: Answer a few questions on personal and professional levels and also on credit history.
Step 5:Submit your application.
Step 6: The bank will scrutinize the application before approving it.
Apply through Wishfin Chat
Step 1: Click the link ‘Use Wishfin Chat’
Step 2: Click the button ‘Start Wishfin Chat’
Step 3: The chat window pops up.
Step 4: Type the information asked in the chat and the chatbot will guide you through the rest of the application process. Follow the instructions and proceed towards completing the application.
How to Choose the Best Shopping Credit Card?
- Analyze Your Spending Habits: Analyze your online shopping patterns and preferences to understand the types of purchases you make repeatedly.
- Rewards Structure: You should look for credit cards that have a rewards structure aligning with your spends. Also, check whether it offers cashback, points, or miles specifically customized for online transactions.
- Cost or Fees: Ensure that the card’s joining fee, annual fee, and other hidden charges make it a cost effective and affordable choice.
- Welcome Offers: Check activation benefits such as welcome vouchers, bonus reward points on reaching spends within a short period of card issuance, zero interest periods, etc.
- Look at the Long Term Benefits: Consider the long term benefits such as reward points, discounts, vouchers, continuous cashback rates, milestone spend benefits, fuel surcharge waivers etc. which continue to make the use of the credit card beneficial beyond the introductory period.
How to Use a Credit Card for Online Shopping?
Before you use your shopping credit card online, you should know the process. Also, know the credit limit assigned to your credit card. The ensuing steps comprise the proces while shopping online using your credit card.
Step 1: Choose the items for purchase: In this step, you have to select the items that you want to purchase. Place them in a cart. Most shopping websites allow you to click on the ‘Add’ button next to or below each item. Once you click that. It gets added to the cart. Then, you can move to the checkout page of the ecommerce website.
Step 2: Enter the shipping information: The checkout page prompts you to enter the details such as address of delivery or shipping address, date of delivery, your contact number, billing address, etc. This page also shows the total bill amount.
Step 3: Choose the payment method: On the payment page, you can select the type of card you wish to pay with. The options provided are usually Mastercard, VISA, American Express, or Discover. Sometimes, the option will not be there since the merchant will not have a partnership with your card. In such a scenario, you can change your mode of payment.
Step 4: Enter the name and credit card information: Enter the credit card details like your name as on the credit card and other essential information for your payment like card number, expiry date, and the security code.
Step 5: Payments through third party websites: Some third party websites like PayPal and Citrus provide you with the facility to create your account and register your credit card on their website. However, these websites require you to enter all your credit card information every time you make a payment.
Benefits of Credit Cards for Online Shopping
- Convenience: Using a credit card for online shopping saves a lot of time. You can enter the details and save them just once. Next time you shop there, the details will be fetched automatically. Also, when you shop on reliable websites, your information will be secure.
- Wide Acceptance: Methods of payment like UPI, debit cards etc. may not be accepted on all platforms, especially international websites. However, credit cards are accepted almost on all platforms.
- Rewards, Cashback, and Discounts: Credit cards help you save on your purchases and thus maximize your benefits through reward points, cashback, and discounts. The reward points can be redeemed against various categories like dining, bill payments, flight or hotel bookings, etc.
- Financing Large Purchases. You can make huge purchases using a credit card even if you don’t have money instantly at the present. You can buy now urgently and then pay later.
- Offers on Partner Merchants: Credit cards often have tie ups with merchants and brands in popular categories like dining, travel, fuel, etc. Shopping with these helps users save on their purchases. Typical perks include free deliveries, EMI options, fee waivers on reaching milestone spends gift vouchers, accelerated rewards, surcharge waivers, etc.
- Enhanced Security: Credit cards have robust security measures, such as encryption and fraud monitoring to protect their users personal and financial data. Most credit card companies also offer fraud protection programs that allow you to dispute frauds.
Disadvantages of Credit Cards for Online Shopping
- High Interest Rates: Credit card issuers charge very high interest rates if a default on payment occurs. If the specified period for payment is crossed, the interest rates charged can be exponentially high. It will burn a big hole in your savings. This is a great disadvantage.
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Hidden Costs: One of the major disadvantages of credit cards is that they will have hidden costs. There are additional charges and fees associated with getting a credit card like processing fees, charges and interests on cash advances, joining fees, and annual fees. This may be an additional burden on your finances apart from the credit card bills that you will have to pay.
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Overspending May Happen : Using a credit card for online shopping may sometimes lead to overspending due to temptation. This is because you are not dealing with actual cash at the moment. This can be dangerous especially when you are dealing with large amounts. It may also lead you to spend on or purchase unnecessary things since you have the power.
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Paying the Minimum Due: One of the disadvantages of credit cards in India is paying the minimum due, which can result in accumulation of credit card bills. Credit card issuers offer a specific period for paying the bill amount, and this ranges between 45 to 55 days. There is a minimum amount or a percentage of the total amount that can be paid if the bill cannot be paid in its entirety. However, if the remaining amount is carried over to the next month, high interest rates are charged on the amount that is carried forward.
Conclusion
Although shopping online with credit cards has some cons, these disadvantages can be avoided if the credit card is used judiciously. Credit cards for online shopping yield plenty of benefits. So, it is good to use them for shopping. However, before you choose a credit card for online shopping, compare between the various cards in terms of fees, hidden charges, rewards offered, etc. Then, choose a card which aligns most with your spending habits.
FREQUENTLY ASKED QUESTIONS
1. Is it secure to shop online with a credit card?
Yes, it is the most secure and safe payment method to use when you shop online. Credit cards use online security features like encryption and fraud monitoring programs to keep your account and personal details safe.
2. Against what can I redeem my credit card reward points?
You can redeem your credit card reward points against vouchers and gifts from the rewards catalogue issued by the credit card issuer, your credit outstanding balance, movie tickets, air miles, cash credit, or even donations to specific charitable organizations, etc.
3. Which is better for shopping, Credit cards or debit cards?
Credit card payments are better for online shopping. Since they have fraud monitoring programs and have in place safety measures and warranties when making large purchases.
