Credit cards have revolutionized online shopping. It offers users convenience, rewards, and exclusive discounts. Using the right credit card not only simplifies transactions but also provides benefits like cashback, rewards points, and protection against fraud. Let’s explore how to choose the best credit card for online shopping.
Using Credit Cards for Online Shopping
- Pay for products and services instantly.
- Access offers and discounts that are available exclusively to cardholders.
- Track your expenses through detailed monthly statements.
What Can Be Purchased with Credit Cards and Platforms they Support
Credit cards are versatile financial tools that can be used for various purchases across different platforms. From online shopping to utility bill payments, they offer convenience, rewards, and cashback benefits. They can be used for -
1. E-Commerce Shopping
Credit cards can be used on various e-commerce platforms such as Amazon, Flipkart, Myntra, and Nykaa. They are used to buy Clothes, electronics, books, groceries, and more. Many credit cards offer exclusive cashback or discounts on these platforms. For example, the Flipkart Axis Bank Credit Card provides 5% cashback on Flipkart and Myntra purchases.
2. Subscriptions
The credit cards can also be used to buy Entertainment and productivity subscriptions such as Netflix, Amazon Prime, Spotify, and Adobe Creative Cloud. For it, Some cards reward recurring payments with cashback or points.
3. Travel Bookings
You can easily book Flights, hotels, vacation packages, and car rentals on platforms like MakeMyTrip, Cleartrip, and Yatra with credit cards. Travel credit cards offer perks like complimentary lounge access, discounts on bookings, and milestone rewards. For example, the Axis Bank Vistara Signature Credit Card provides free flight tickets and milestone bonuses.
4. Groceries and Daily Needs
Credit cards can be used on Online stores like BigBasket or local supermarkets to buy Grocery items, personal care products, and other household essentials. You will get Cashback or points for every purchase you make on specific cards.
5. Food Delivery
A person can order Meals from Zomato, Swiggy, etc., and pay through it. Many credit cards offer reward points or discounts for food orders.
6. Utility Bill Payments
You can also make payments like Electricity, water, gas, broadband, mobile bills etc through it. It can be done through Paytm, PhonePe, etc
Difference Between Credit, Debit, and ATM Cards
| Point | Credit Card | Debit Card | ATM Card |
|---|---|---|---|
| Source of Funds | Borrowed from the bank, repaid later. | Directly debited from your bank account. | Linked to a savings account, cash-only. |
| Usage | It can be used for online and offline transactions. | It can be used for online and offline transactions. | Limited to withdrawing cash. |
| Rewards | Cashback, reward points, and offers. | Minimal or no rewards. | None. |
| EMI Options | Available for high-value transactions. | Rarely available. | Not applicable. |
| Credit Score Impact | Affects credit score. | Does not affect credit score. | Does not affect credit score. |
| Payment Flexibility | Pay later within the billing cycle. | Immediate payment. | No flexibility. |
| Security Features | Advanced fraud protection. | Limited fraud protection. | Basic security. |
| Interest Charges | Applicable if payments are delayed. | No interest charges. | Not applicable. |
| Eligibility Criteria | Requires income proof and creditworthiness. | Easy to obtain with a savings account. | No additional eligibility. |
| Additional Fees | Annual charges, late fees, etc. | Minimal charges. | None. |
Top 10 Best Credit Cards for Online Shopping
Choosing the right credit card for online shopping can make a huge difference in your savings and benefits. With so many options available, it's essential to pick a card that matches your spending habits and goals. These are classified by types and features -
1. Cashback Credit Cards
If you love getting instant cashback on your purchases, cashback credit cards are for you.
Example: Amazon Pay ICICI Bank Credit Card
It offers 5% cashback on Amazon purchases (for Prime members), has Unlimited cashback with no restrictions. It does not require any joining fee or annual fee, making it a budget-friendly option. It is ideal for frequent Amazon shoppers who want to maximize their savings effortlessly.
2. Reward Points Credit Cards
Reward points credit cards are perfect for those who want to accumulate points and redeem them for travel, shopping, or lifestyle benefits.
Example: HDFC Regalia Credit Card
It provides 4 reward points for every ₹150 spent on purchases. It has access to premium airport lounges (international and domestic). It also offers exclusive travel benefits like discounts on flights and hotels. You can use this card for big-ticket purchases to get points quickly.
3. Travel Credit Cards
For frequent travelers, travel credit cards come with benefits like flight tickets, lounge access, and milestone rewards.
Example: Axis Bank Vistara Signature Credit Card. This card is perfect for you if you’re a frequent flyer with Vistara Airlines.
4. No Annual Fee Credit Cards
Some credit cards can be used without paying no annual fee. They offer significant benefits with no extra cost.
Example: IDFC FIRST Millennia Credit Card
This credit card has zero annual fee with lifetime free membership. It has low interest rates starting at 0.75% per month. It is great for beginners or budget-conscious users who don’t want recurring fees.
5. Student-Friendly Credit Cards
Designed for students, these cards offer benefits like cashback on education-related expenses and more.
Example: SBI Student Plus Advantage Credit Card
It offers cashback on educational expenses such as fees or books. It has a Fuel surcharge waiver, helping students to save on transportation costs. In addition to it , it has low-interest rates and easy EMI conversion. Thus, it is ideal for students who look to manage expenses while earning rewards.
Also Read - Check if a credit card suits the needs of students before applying.
6. Shopping-Specific Credit Cards
These cards are made for frequent shoppers, by offering certain perks on e-commerce platforms.
Example: Flipkart Axis Bank Credit Card
With the help of it you can earn 5% cashback on Flipkart and Myntra purchases. It has the feature of Unlimited cashback with no limits. It also offers exclusive discounts on partner brands like Swiggy and Uber.
7. Premium Credit Cards
Premium cards are packed with benefits like higher reward rates, global acceptance, and exclusive perks.
Example: American Express Membership Rewards Credit Card
It provides high reward points for every ₹50 spent. It has access to premium benefits like travel perks and is accepted at global merchants with high security.
8. Fuel Credit Cards
If you spend a lot on fuel, these cards can help you save significantly on every refill.
Example: BPCL SBI Card
With this card you can get 4.25% value back on fuel purchases at BPCL petrol pumps. Reward points can be redeemed for fuel or shopping.
9. Co-Branded Credit Cards
Co-branded cards partner with specific brands to offer targeted benefits.
Example: IRCTC SBI Platinum Card
It offers discounts on train ticket bookings via IRCTC. You can also earn rewards for shopping, dining, and entertainment etc. It has lower transaction fees on train bookings. It is best for frequent train travelers in India.
10. Super Premium Credit Cards
Super-premium cards offer many unique perks and are tailored for high-net-worth individuals.
Example: HDFC Diners Club Black Card
It provides unlimited lounge access at airports worldwide. Higher reward point conversions for travel and shopping. Access to luxury hotel programs and concierge services.
Where to Get These Credit Cards?
You can apply for credit cards through multiple channels based on your convenience:
1. Bank Websites and Branches
To get these credit cards, you can visit the official websites of banks like HDFC, ICICI, SBI, or Axis Bank to apply online.
Alternatively, you can visit the nearest bank branch for in-person assistance.
2. Third-Party Comparison Websites
Many third-party websites like BankBazaar, Paisabazaar, and even platforms like Amazon Pay allow you to compare credit cards and apply directly.
These websites display the best offers, eligibility criteria, and reward details in one place for easier decision-making.
How to Use Credit Cards for Online Shopping?
1. Link Your Credit Card to Payment Platforms
Add your credit card to platforms like Paytm, Amazon Pay, or Google Pay for faster checkouts.
Many of these platforms offer cashback or reward points for transactions made using linked credit cards.
2. Secure Checkout
During online purchases, enter your credit card details (card number, expiry date, and CVV) at checkout.
Use OTP (One-Time Password), biometric verification, or card PIN for added security.
3. Maximize Security
Always shop on secure websites with "https://" in the URL.
Avoid saving your card details on unfamiliar platforms to reduce the risk of fraud.
Safest Credit Cards for Online Shopping
These credit cards come equipped with advanced security features to protect your transactions:
1. ICICI Amazon Pay Credit Card
Key Features:
- Offers robust fraud protection.
- OTP-based authentication for every transaction.
- No annual fees, making it a cost-effective choice for safe online purchases.
2. HDFC Regalia Credit Card
Key Features:
- Uses advanced encryption technology for secure payments.
- Access to a dedicated fraud helpline for instant support.
- Includes insurance cover for card-related fraud.
Credit Card Charges for Online Shopping
Using credit cards for online shopping comes with associated costs that you should be aware of:
1. Interest Rates
Credit card interest rates range from 1.5% to 3.5% monthly (18% to 42% annually) if payments are delayed. Avoid carrying forward balances to save on interest charges.
2. Annual Fees
Annual fees can vary between ₹500 to ₹5000, depending on the card and its features. Example: Premium cards like HDFC Diners Club Black charge higher fees due to exclusive benefits.
3. Late Payment Penalties
Missing the due date incurs late fees, typically ranging from ₹100 to ₹1200, depending on your outstanding balance. Always pay the full outstanding amount within the billing cycle to avoid interest and late fees.
Free Credit Cards for Online Shopping in India
If you're looking for credit cards without annual fees, here are some excellent options:
1. ICICI Amazon Pay Credit Card
Lifetime free credit card with no annual fee. Earn up to 5% cashback on Amazon purchases.2. Flipkart Axis Bank Credit Card
No annual fees under certain spending conditions. Get 5% cashback on Flipkart and Myntra purchases, along with additional benefits on partner platforms.
Payment Cycles and Credit Limits
Understanding your credit card’s billing cycle and credit limit can help you manage your spending better:
1. Billing Cycle
A typical billing cycle is 30 days, followed by a 15-20 day grace period to clear your dues without incurring interest. Example: If your billing cycle ends on the 30th of the month, the payment due date will fall around the 15th of the next month.
2. Credit Limit
The limit depends on factors like income, credit score, and the type of card. Spending beyond your credit limit may result in penalties or a decline in transactions. Alwys try to use less than 30%-50% of your total credit limit to maintain a good credit score.
Safety Tips While Using Credit Cards for Online Shopping
Keeping your credit card secure while shopping online is crucial. Follow these best practices for safety:
1. Avoid Saving Card Details
Never save your credit card information on websites, especially on public or shared devices.
2. Use Secure Platforms
Shop only on websites with a secure connection (look for "https://" in the URL). Avoid using credit cards on unverified or suspicious platforms.
Also Read - Read about safety tips for online credit card usage
3. Enable Transaction Alerts
Activate SMS or email notifications for all transactions to monitor activity in real time.
4. Use OTP and Biometric Verification
Always choose two-factor authentication for added security during transactions.
5. Monitor Statements Regularly
Review your credit card statements monthly to detect unauthorized transactions early.
Credit cards have truly transformed the way we shop online, offering unparalleled convenience, rewards, and security. By choosing the right credit card tailored to your spending habits—whether it's for cashback, travel perks, or no annual fees—you can maximize your benefits while staying financially smart.
Also Read - Explore how you can transfer money from your credit card to your bank account
FAQs
Which credit card is best for online shopping in India for students?
SBI Student Plus Advantage Card.
Which SBI credit card is best for online shopping?
SBI SimplyCLICK Card.
Which ICICI credit card is best for online shopping?
ICICI Coral Credit Card.
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