Pros and Cons of Using Credit Cards Online

The immense profileration of internet in the modern world has seen its adoption fulfil the needs of a myriad of different industries. Therefore, it comes as no surprise that the entire experience of shopping has been revolutionized into a virtual one available at the tip of your fingertips even on your mobile and tablet devices. A crucial component of this wonderful use of technology that has eliminated the exhausting and stressful aspects associated with shopping has been the use of online payment methods. Perhaps the most brilliant one of these payments methods has been the use of credit credits online. It has not only provided a way to comfortably buy a wide variety of products and services online but has just as well provided a platform for people all over the world to monetize their ideas. Never in the history of the world has there ever existed so many online businesses, a huge percentage of which receive payments online through credit cards. However, as with everything there are both benefits and drawbacks in using credit cards online and it is essential for customers and businesses alike to be aware of them so that they can make the best, informed decisions.

Pros of Using Credit Cards Online

The advantages of using credit cards online share a general theme of convenience and ease of accessibility.

Allows you to buy from a wider selection of products at lower costs from the comfort of any location, right from your personal bathroom to your dog park. With a working internet connection, you can use your credit card to order from pretty much anywhere in the world using the device of your choice.
Saves you from the trouble of waiting in queues, limited range of options, out of stock products and other problems associated with traditional shopping experiences.
Offers your built in fraud protection, as Federal laws give you the right to dispute charges and transactions you didn’t make. Maximum liability is upto $50 for unauthorized usage. For debit cards this goes up to $500.
Offers rewards programs and cash back opportunities that act as financial incentives for users to use them for a plethora of transactions such as buying groceries, paying electricty bills, booking movie tickets or even filling up gas in cars.
Provides a swift way to transfer funds within minutes using seamless and secure processors like Paypal which accept a wide range of payment gateways such as MasterCard and Visa to name a few.
Gives you a convenient way to make transactions in different countries without having to go through the effort of converting your money into the local currency.

Cons of Using Credit Cards Online

The disadvantages of using credit cards online share the general theme of a risk of getting ripped off.

Anything that exists on the internet has a potential to be hacked and exploited for fraud. There have been numerous instances of data theft where credit card information has been stolen and used to scam merchants and customers alike. Stolen credit card information is sold on the Dark Web black markets and is a huge industry.
The trade off for the increase in convenience is the additional, complex costs and fees that are involved with online credit card payments. Late payments, fines and hidden costs can all add up to a lot of extra expenditure.
For those will low impluse control, there is a dangerous risk of accumulating a huge amount of debt since one does not have to apply for a loan and can just get multiple credit cards and spend recklessly. This has resulted in many Americans living their lives in debt and going bankrupt.
Since credit cards make money easily available at your fingertips, it increases the desires of people to buy things they don’t really need and can’t afford. This promotes a culture of spending over saving and leads to an increase in consumerism and materialism which studies suggest lead to unhappiness in the long term.
You compromise your privacy every time you make an online credit card payment since it requires you to give up your name, your residential address as well as your phone number.

While it is evident that using credits cards for online payments does indeed offer a great deal of benefits, it is prudent to adopt a cautious approach when dealing with online stories that are lesser known since they might often turn out to be fraudulent in nature. Always use credit cards and not debit cards online since credit cards offer better protection and make you less liable in case of frauds. Never enter your credit card information on a public computer or use a public wifi to make such a transaction. Make sure the website’s url starts with an https:// rather than a http:// as the additional ‘s’ indicates that the site uses encryption that adds an additional layer of protection from hackers.