The digital economy has ushered in an era of online bargain hunters. Most have credit cards at the ready, but sadly they aren’t always the appropriate credit cards for use online.
There are a few things to consider before whipping the plastic out from your wallet. There are surcharges to consider, and you will want to know the returns and delivery policy of any retailer you use. On top of that, many internet retailers are actually based overseas, which means you could be up for currency conversion fees, and then will add to your total purchase price – often enough to cancel out any discount you might be getting.
Which perks suit online shoppers?
When it comes to shopping online and credit cards, you’re probably going to be interested in a card with these features:
- Long interest free days on purchases (55+) so you get a bit of breathing space to pay if off each month without paying interest
- A reasonable ongoing purchase rate, one below 15%
- Extended warranty and purchase security
- No international transaction fees
- Bonus rewards points. This can be an offer when you signup, or bonus partners with online outlets where you will be happy to spend on the card
- Identity theft protection. After a couple of wild years for cybersecurity breaches in Australia, check if your credit card has identity theft protection.
Why use a credit card and not a debit card?
Debit cards are a good choice for anyone who can’t control the amount they might spend online, and the amount of debt you can get in will be limited, but using a credit card can still be useful for both convenience and security. If there is a sale item you want to buy on the day, a credit card can help you get it and you can transfer the money back when you do have it in your bank account. Credit cards are also increasingly useful for transactions that might end up in a dispute too. Credit card companies have a strong interest in making sure transactions are processed correctly, and because the funds might not be transferred instantly, any fraudulent or disputed transactions can often be stopped before money has moved between the banks. This makes a difference to you because disputes on credit cards are often resolved much more quickly and efficiently than if you had used a debit card and your bank account.
Using a PayPal account with your credit card is also touted as the most secure option for making and accepting payments online, especially when the sale is a private one via a site such as eBay or Gumtree, and not through a major retailer.
Tips to find the best online shopping deals
A search for online shopping deals will bring up pages and pages of results for both deal listings and online stores. While it’s great to have so much variety, it also takes a lot of time to go through them all.
So what does it take to find the best online shopping deals for exactly what you want? Organisation and focus are key elements of the process.
In fact, a popular Lifehacker article from a few years ago suggests that keeping a list is one of the easiest ways to find the right deals when you shop online. But unlike regular shopping lists, you can create wish lists with whatever online stores you like to shop at – and often these stores will let you know when what you want is on sale.
Not only will organisational tools like wish lists help you find the best online shopping deals, but it will also help you stick to what you want to buy and could save you more money as a result. Other ways to find the best online shopping deals include:
- Comparing prices between a few websites,
- Considering the total cost with shipping,
- Subscribing to online store newsletters,
- Sending an enquiry to see if a store will price match
- Becoming a member of loyalty programs; and
- Buying everything you need during sales season.
It’s important to consider the terms and conditions of any store you shop at online. The return policy, shipping and other additional charges, and the privacy policy are all particularly important when you shop online so that you avoid any nasty surprises at the virtual checkout or further down the track.
The bottom line is that online shopping has a lot of great deals but there are still times when you could pay more than you want. Staying organised and following the guidelines above will help you get the best deals as often as possible.
Key Things to Keep in Mind:
- Annual Fees: Make sure the benefits you’ll gain outweigh the cost of the annual fee.
- Interest Rates: If you tend to carry a balance, prioritize cards with lower interest rates.
- Foreign Transaction Fees: Planning to shop from overseas? Choose a card that skips these charges.
- Rewards Programs: Look for one that matches how and where you usually spend.
- Security Features: Fraud protection and other safeguards should be part of the package.
- Balance Transfer Offers: Some cards offer introductory 0% rates on transferred balances.
- Spending Habits: Think about which card will reward your everyday online purchases the most.
Summing up
Online shopping and credit cards go hand in hand, so it is a good idea to consider the different ways one affects the other.
As MoneySmart has noted, “Whether we are doing the weekly food shop, booking holidays or buying that special gift, more and more of us are turning to the internet to buy goods.”
Paying with a credit card, the organisation says, can give you extra protection, “including the right to a 'charge back' if you fall victim to fraud”. But the benefits you get from shopping online with a credit card still vary from issuer to issuer, so reading about all of the different features available means you will be able to choose the best credit card to use when you shop online.
Keeping up-to-date on internet fraud and online shopping risks, on the other hand, will help keep your credit card details and personal information safe. So whether you shop online all of the time or only rarely click to buy, being aware of the elements outlined above means that you can make more informed decisions to stay safe and reap the rewards of shopping online.
verushka
4 July 2022Pauline
6 July 2022