The ease of online shopping has exponentially increased with online payment methods, especially using credit and debit cards. It is essential to be careful when using them as there might be a high possibility of theft and fraud. Credit cards are often safer to use than debit cards as they are not directly linked to your bank account; therefore, even if someone steals your information, they can’t take money from your bank account.
Credit cards have the extra protection that debit cards don’t have, which can help protect you from fraud. But debit cards have different protections, which means you might lose money from your bank account if someone steals your information. In this blog, we will discuss credit card and debit card difference, their benefits, and how to avoid fraud.
1. Protection Against Fraud
In case of fraudulent activity in your debit card, you may be able to block your card, and banks will do so, but they might not give you back the money that was stolen from your bank account. But in the case of a credit card, if someone gets hold of your credit card access, you can report it, and the credit card company will usually return your money.
2. Improved Credit Score
Debit cards use money that is in your bank account. At the same time, credit cards allow you to borrow the money you need to return. Your credit cibil score improves if you purchase any product with your credit card and pay off your credit card bill on time. Debit cards don’t help you build credit, so if you want to improve your credit score, using a credit card responsibly is a good idea.
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3. Zero Fraud Liability
The government provides some protection to both credit and debit cards if you are a victim of fraudulent activity. But credit cards have extra security that saves guards your credit card, and if you report the problem immediately, you will not have to pay for the fraudulent transaction. Unfortunately, it is not the same for debit cards as they do not provide any such liability; any money deducted will be deducted from your bank account.
4. Dispute Misleading Transactions And Charges
When using a debit card for an online transaction, you might be charged incorrectly, and rectifying the error is arduous. You have to tell the seller and fix the problem, which becomes very frustrating and time-consuming. But if the same happens while using a debit card, you can contact your credit card company and raise an issue and dispute the charge done incorrectly. Also, if someone uses your credit card without your permission or there is a mistake in your credit card bill, you can contact the credit card company to dispute the charge.
5. Extended Warranties
Credit cards offer an extra benefit called an extended warranty and return facility, which debit cards do not have. This implies that when you buy products using your credit card and the product stops working or has an issue and the warranty period has lapsed, your credit card company might still fix it or even replace it for you. This feature of extension of the warranty period is only applicable to products that have a warranty in the first place.
Useful Tips for Using Credit Card Online
It would be best if you took several precautions before purchasing anything using an online credit card. Some of them are:
- Pay off the entire credit card bill to avoid incurring any further fines or charges. To get the hang of using a credit card, start by purchasing products that are not costly and easy to pay for.
- Pay attention to the “https” at the start of the website URL, and shop only from websites with solid security.
- Use caution while using websites that appear amateurish or suspect. Some fraudulent websites pose as legitimate shops in order to collect your information.
- Be discreet with your personal and payment card details. Provide only what is necessary, and only use your credit card number when essential.
- Regularly check your accounts to ensure there are no fraudulent charges. To protect yourself, catching them as soon as possible is critical. To be secure, you should check your accounts every few days.
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Conclusion
In conclusion, using a credit card allows you to take advantage of rewards programs and other benefits that the card issuer may be provided, as well as the convenience of not having to pay cash at the time of the transaction.
Compared to a debit card, a credit card offers several benefits, such as increased security, incentives, and a wide range of practical applications. If you’re considering getting a credit card, look into your alternatives and select the one that best suits your requirements and financial situation.
