Some credit cards offer specific benefits related to online shopping like elevated rewards or purchase protections. Whether you do a lot of shopping in stores or online, it may make sense to have a credit card that offers benefits specific to your shopping needs.
Why Are Credit Cards Better for Online Shopping?
First and foremost, your credit cards may offer you rewards when you shop. From miles to cash back, trip credits to rewards points, credit cards pack rewards that beat most debit cards.
Credit cards also offer increased security. When shopping online you’re able to, in many circumstances, generate virtual card numbers, meaning that you don’t have to give your actual card number and expiration date out when shopping.
Credit cards also offer more protection, if fraud does occur. With a debit card, the money comes directly out of your checking account, meaning you could go days or weeks without it. If you’re using a credit card, however, you won’t be liable for the disputed amount until the case is resolved.
How To Use a Credit Card for Shopping
Using a credit card for shopping works just like using a credit card for any other type of purchase you make. Ideally, you’ll use a card that earns rewards on your purchases and also comes with purchase protection and/or extended warranty coverage.
How To Use a Credit Card for Online Shopping
When shopping online, using a credit card instead of a debit card can be a smart idea. That’s because credit cards typically come with better fraud protections and other safeguards to protect you from swindlers. When you see a charge you don’t recognize on your credit card statement, you can dispute the charges. Although you can generally do the same with a debit card, the disputed funds won’t be available in your bank account until the issue is resolved in your favor.
How To Stay Safe When Shopping Online
Ideally, any online shopping you do should be limited to sites you know and trust. But even the biggest retailers have had security breaches and you may want to consider identity theft protection for your credit cards and other sensitive financial information.
Most credit cards will provide some fraud coverage where you won’t be liable for unauthorized charges to your account. If you are making a purchase through a new site, consider using a virtual credit card number to add an extra layer of security. Enrolling in a credit monitoring service and/or purchasing identity theft insurance may help provide greater peace of mind when shopping online.