Are credit cards really a safe tool for payment? This is a question that most people ask before filling a credit card application. Well, the answer is a definite yes! Simply because you are using the ‘bank’s money’ and not your own. Also, the law offers more protection to customers using a credit card in instances of theft, fraud, etc.
Now, let us take a look at the reasons why using a credit card is safe:● Money is not debited from your account:
Firstly, when you use a credit card for making a payment
, the money is not directly debited from your account instantly. You will only have to make a payment when the credit card bill statement
is sent to you at the end of the month. So, even if your card is swiped accidentally, it is much easier to handle it because the money has not been debited from your personal account. Therefore, it is much easier to dispute these charges.● Protection in case of theft:
If you lose your credit card or if it is used by a thief, the money will not get deducted from your account. Secondly, the bank will not hold the cardholder responsible in any way because he/she would have immediately reported the theft of the card. In such cases, credit card companies
usually block the card immediately to avoid any case of future misuse. In fact, many well-known banks in the country have very stringent rules to protect credit cardholders in cases of fraud/loss/theft.● You can block the card immediately:
With so many technological advancements, customers will be able to block a credit card online in a matter of seconds just like how they apply for a credit card online
. So in cases when the card is lost, misplaced or stolen, a user can log into their net banking account, or use the bank’s mobile app to immediately block the card.● Purchase protection:
If the goods that you have purchased are in a damaged condition or even get stolen, the credit card company will cover the cost of the same. In most cases, credit card companies will at least give the customer a certain percentage of the cost of the product in question, though policies may vary from bank to bank.● Cardholders can withhold payments:
All credit cardholders have the right not to make payments for a temporary period of time in case of a dispute. If this facility is utilized, it will not take a beating even on the credit score of the individual concerned. This can be done if the consumer is not happy with the quality of the product or service and the retailer or merchant in question refuses to give a refund.● Warranty:
Another great thing about a credit card is that customers are always offered an extended warranty on the products that they purchase. This is especially useful in case of expensive purchases. So, even if the warranty offered by the manufacturer expires, an extended warranty can be obtained from the credit card company.● Easier returns:
Apart from other benefits, credit cards also offer a good return policy
. So, even if the retailer does not accept a return, a credit card company might actually help you get one.● Best option for expensive purchases:
In cases when customers are making higher value purchases like a television, refrigerator, etc, it is best to use a credit card. This is because if anything unexpected happens such as damage during delivery for example, the same can be disputed without any kind of hassle.
Remember, when you use a credit card, you are backed by the bank that has granted you the credit card and you are not alone. Therefore, it is a very wise decision to use the same for payments and avail all the benefits.