Credit cards are a modern payment trend for most buyers. Sometimes using your card to sort out an expense or make a purchase can protect you from fraud, help you accumulate rewards and enjoy extra bonuses most people don’t know. The best part; you can benefit from all these perks without paying any interest, providing you clear your full statement balance.
Here’s when to use your credit card.
If it’s expensive, pay with your credit card
Credit cards can offer useful protections against damaged products or faulty services, and paying too much for an item. Think of it this way:
- Chargebacks – while a chargebacks is possible for both credit and debit, a bank is more likely to reverse a credit card charge. Remember, a chargeback on a debit card brings back your money while reversing a credit card charge brings back the bank’s money in case the processors fraud and chargeback prevention measures fail.
- Extended warranties – some credit card brands offer extended warranties for particular purchases made using the card, usually adding up an extra year of coverage to the one offered by the manufacturer. Though there are a few exceptions like refurbished products and fragile merchandise like antiques, these extended warranties can prove useful for pricey purchases.
Paying online? Go ahead, Credit cards are the best!
For security reasons, it’s a good idea to use your credit card for online purchases. You’re safer with credit than debit cards in case your card number lands in the wrong hands.
According to the law, credit card users are legally responsible for only up to $50 for fraudulent or illegal activity. On the contrary, debit card users are accountable for the same $50 for illegal or fraudulent transactions if they present the case within two days and up to a whooping $500 if they report within 60 days. Any cases presented later than 60 days means the liability remains on the cardholder and not the bank.
Often, most banks don’t implement their legal right to make cardholders account for any fraudulent transactions reported soon after for the fear of wild reactions that would erupt from the public, but the truth is; your debit card means more trouble in the hands of a fraudster than your credit card would. This is mainly because the bank can choose to hold your finances as it completes its investigation on a fraud.
Not all times do you benefit from using your credit card; sometimes it’s better kept in the pocket. But you can be sure to win if you use it in the above situations.
Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 Chargeback Prevention Company serving both traditional and high-risk merchants.