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Being able to use your credit card online from the comfort of whatever device you have is the equivalent of having the best of both worlds. The rise of online shopping has made it possible to find things that are not yet available in Australia at a more affordable price. However, with online fraud also on the rise, you might be sceptical on whether you should swipe online or go about your shopping the good old fashion way. In case you didn’t know it, your credit card comes with some amazing features that protect you while shopping online.
Where does our money go?
If you read up on any media reporting on our financial well being you quickly find that we are not headed for the end of a cliff, but we are in murky waters when it comes to debt. Perhaps the increased spending on pampering ourselves is one-way Aussies see fit to destress on the mounting financial woe. According to ASIC, the average Australian has accrued $32 billion in debt.
This isn’t causing Aussies to slam on the breaks when it comes to retail shopping. ABS statistics revealed that retail shopping has increased by 0.3%. We spent approximately $14.9 billion on alcohol and would rather spend more on recreational activities ($80.3 billion) than on our medical aid ($38.5 billion). While Australian spending habits can be questionable at most, there are ways to reduce the cost without missing out on those important purchases and pampering ourselves without hurting our credit cards.
Convenience is the reason
A survey by Credit World showed that almost half (56%) of the people they surveyed admitted that the sole purpose of signing up for a credit card was due to its convenience and online shopping. Although Australians do not place large purchases on their credit cards when swiping online, these small amounts can attract an interest rate that can increase your monthly repayments on the card. One-fifth of online retail purchases are made using a mobile phone or an app on a phone. According to the RBA, this is a 6% increase from previous years. Most transaction were made at food or transport places. Depending on the interest rate you have on your card you can look at forking out more come month end.
Features on your credit card that make shopping online worthwhile
The perks of using a credit card while shopping online are that you can request a chargeback if you are unhappy with a product or service. This can be done by requesting a chargeback from your credit card company if you happen to have a dispute in store or online.
Most credit cards come with an automatic currency conversion that comes with a fee of 3%-5% that gets charged to your purchase. However, if you are constantly purchasing items online from overseas stores, you might want to consider investing in a foreign transaction card will help you save on the conversion fees that are charged to ordinary cards.
It is standard that all credit cards have security features that protect you against fraud. Standard features such as fraud protection help protect you against scammers and fraudsters. However, this feature only works if you shop on verified sites. When shopping online you need to make sure that the link is verified by Visa or Mastercard Protection.
It is also important to know that other features of your card such as purchase protection or extended warranty that can come in handy when purchasing goods can become void when you shop online. Shopping online with your credit card does come with perks, but it is vital that you ensure that you are protected when swiping online.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
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