It is great to shop online, isn’t it? Almost makes you forget the world around as you get caught up with infinite scrolling on those shopping apps. Amazon and Flipkart have announced some great deals ahead of their Great Indian Festival Sale and Big Billion Days sale. It is natural to have the urge to buy things at discounted prices. And before your fingers reach out for the shopping apps, some things should be kept in mind while making payments online.
You may have shopped online or offline, using your debit card without any issues in the past, and it is not like there is any hazard to online shopping. Online shopping stepped in as a saviour when people could not step out during the pandemic. So why is it being asserted to not use debit cards for online payments? You may think debit cards you use for payment have exclusive PINs and OTPs are required for online transactions. But not using debit cards is thinking ahead for when something goes wrong. And going by Murphy’s law (cliched as it may sound) “things will go wrong in any given situation if you give them a chance.” Here is why you should not take that chance with debit cards:
— While using a debit card, or a credit card for that matter, for online shopping, you are making an e-transaction. But there lies a big difference between using the two. The credit card puts a limit on how much you can spend whereas there is no such limit for debit cards. The very meaning of debit is that the amount from your account immediately gets deducted. And the very process of asking for refunds for your own money till getting it back can be tedious, to say the least.
— Online frauds happen, and users who frequently shop online should be wary of it. First of all, nobody should face the misfortune of losing money and the inconvenience and hassle of taking trips to the bank. But in case, if a situation occurs where a users’ debit card gets compromised, he will lose all the money in his account immediately. But if his credit card gets compromised instead, he will lose all his bank credit, at worst.
— When a user spends money through his credit card, it is his bank that is spending money for the transaction with some buffer time granted to the user, to pay it up. In the case of fraud, the bank takes it upon itself to handle the situation to avoid the fraud. In simpler words, there is no liability on the credit card holder as he can explain it to the bank. If the bank, after investigating the transactions, finds that the user is speaking the truth, they do not charge the user for fraudulent transactions.
— Users can take up the issue of fraud with their banks in case of debit cards as well. But the difference is they will have already lost that money. It is gone. It is possible to get the money back in the case of debit cards as well. But in case of a credit card fraud, the user does not lose his money immediately, unless the bank is not convinced that the fraudulent transactions were a fraud. It is the buffer time and bank credits that make all the difference for credit cards as users do not have to pay up till the end of their credit card billing cycle.