Credit Card Tips You CAN’T Afford To Miss: A blog around credit cards and how they differ from debit cards etc. while looking at things like rewards, transaction fees, late payments, and more.
If you’ve ever looked into picking up a new credit card, you know how confusing it can be. There’s so much technical jargon and fees to deal with, and sometimes, it still doesn’t make much sense even after reading the information. However, this is where being informed can help. This article will clear up some of the outstanding issues for you, giving you great tips about credit cards and debit cards.
A credit card is a financial tool issued by banks with a predetermined credit limit that allows you to conduct cashless transactions with no additional fees. A debit card allows you to conduct safe and easy online and in-person purchases by removing monies from your checking account. When it comes to making purchases in stores or online, credit cards and debit cards have a lot in common, but there is one notable distinction. Debit cards allow you to make purchases using the amount of money that has been placed in your bank account. However, credit cards let you borrow money from the card company up to a certain amount to buy things or get cash.
Credit cards have several pros over debit cards, although they also have some disadvantages. In terms of rewards cards, credit card users can get cash, discounts, travel points, and a variety of other benefits not accessible to debit cardholders. Also, when it comes to incentives, merely using a debit card may be costing you money. Rewards can be applied in a flat-rate or tier-based fashion.
The Fair Credit Billing Act permits credit cardholders to contest unlawful purchases of items damaged or lost in transit. If you buy something with a debit card, you can only get your money back if the merchant agrees to return your funds. In addition, credit cards are far more secure than debit cards when it comes to fraud protection as long as the loss or theft is reported promptly by the consumer.
Card present or card not present fees are the costs incurred by businesses when their payment service provider conducts an electronic payment for card present or card not present. Credit card payments usually accompany a transaction fee of 2.5%. In addition, the business receiving the payment must pay interchange fees and a fee levied by the merchant service provider. Also, if you use an ATM that isn’t linked with the bank that provided your debit card, you may be charged an ATM fee.
In general, credit cards offer more rewards and flexibility than debit cards. However, you should be aware of the transaction fees that come attached before you sign up for a card—those can really dent any rewards or cashback savings that your card might otherwise offer.