Online Shopping With Credit Cards: Pros and Cons

It would be already out-of-date to start this article stating that internet has become a popular tool for commerce and shopping. Truth is that almost all people in some way use the internet in a manner that affects their economy and finances. However there are still some people who are reluctant to resort to the internet when they need to obtain something that they cannot get at local stores while there are others that do not go to stores anymore and shop online even for bread and butter.

Online shopping has advantages and disadvantages. Let us analyze and ponder them to see if that reluctance is justified. The main reasons why people hesitate when shopping on the internet is that they fear fraud or scams both with the product and with the credit card and also because even if the vendor is a legitimate company the product is not physically there for them to touch, compare, examine, etc. Of course, people who are hesitant about internet purchases are also hesitant about catalog purchases or phone purchases.

Some Advantages

When purchasing online it is much easier to compare prices and product specifications because the amount of available information exceeds what the vendors and salesmen can provide you when you visit a store or more importantly, the amount of information they are willing to share with you.

Also, the costs are reduced both for you since there is no need for you to travel to the store, spending time and money and for the merchant whose costs are reduced in terms of personnel, rent, electricity, etc. This cost reduction shows on the prices you can obtain for the products you see that are usually up to 20% lower on e-stores when compared to local merchants.

Disadvantages

The delivery cost issue may or may not be a disadvantage depending on how you see it. Truth is that with regular stores you just walk by, enter the store, select the product, pay for it and take it home. If you do not need to travel to it or if you can reach it by walking, then there are no costs in terms of transportation for small items. When it comes to furniture, house appliances and similar items, the delivery may be charged apart or the store may say it is on them but either way, you will pay for it (it may be included in the price).

With online stores, the problem is that there are always delivery costs unless the company has a spot where you can pass and collect the goods. Moreover, these companies usually hire third party’s transportation and that increases the costs. Yet, given that on e-stores you usually get lower prices, though you need to take the delivery costs into consideration when comparing, chances are you will still get a great price. Moreover, some credit cards provide insurance so you know that the product will be safe during transportation, no matter where you live.

The main disadvantage or worry that purchases on the web with credit cards present is fraud and identity theft. Though many security measures have been taken by credit card companies to avoid such events, the risk is still present and you should only use your card on sites you trust. Some credit card companies also offer insurance to protect you from this kind of fraud.

As regards to identity theft, the only advice we can give is to avoid providing personal data (especially the social security number) to unknown sites and to keep an eye on your credit report by requesting a copy from time to time to make sure nobody is using your personal information for other purposes than those authorized by you. There are also credit monitoring services you can hire that can alert you if such events occur.