With summer winding down, the holiday season will be here before you know it. As you begin to prioritize your game plan for holiday shopping, it may be beneficial to pick one credit card for online use. Not only can this help you track spending and earn rewards, but it also offers valuable consumer protections. By using a single card for online purchases, you can more easily monitor your spending, detect potential fraud, and take advantage of benefits like purchase protection and extended warranties.
We’ve asked experts to elaborate on the advantages. Here’s what you should know.
Why you may want to consider a one-card approach for online shopping
Credit card use is a personal decision so understanding your spending and payback habits are pivotal to making decisions about your credit card decisions. “Some people just can’t handle more than one credit card. They’re too careless,” says Monica Eaton, spokesperson for Chargebacks 011, a chargeback management service. “Asking them to keep track of one credit card is hard enough; if you ask them to keep an eye on three or four of them may be too overwhelming.”
If juggling multiple credit card accounts is a challenge for you, simplifying your finances with a single card might be your best strategy. Instead of carrying around multiple cards, consider using just one for all your purchases. Or, if you prefer, you could have a separate card for everyday spending and online transactions. Either way, this approach can help you stay on top of your spending and take advantage of the protections that credit cards offer.
What are the advantages of using just one credit card for online shopping?
According to Eaton, the advantages of using a single credit card for online purchases are clear-cut: It simplifies your financial life and reduces your risk exposure.
“If you’re buying stuff on Amazon with one card, then buying stuff on eBay with another — and so on and so forth — it’s going to be tricky to quantify all your spending,” says Eaton. “Consumers lose track of their expenditures all the time, and it leads to reckless spending habits, getting into debt, and making costly decisions.” To that point, she says designating one specific card for online purchases can make a world of difference, especially if they comprise a huge percentage of your expenses.
Another perk of using a single card for online buying is reducing the chance of online fraud. “Helping consumers simplify their budgeting is just one-half of the equation,” adds Eaton. “The other major benefit is that using one card for online purchases limits your exposure to digital fraud. In essence, it’s a risk-mitigation strategy.”
➤ SEE MORE:Best credit cards for online shopping
What to consider before designating one card for online use
Before you pick one card to use, here are tips to reap the most benefits of the account:
1. Pay attention to the credit card reward program. Look for a card that gives you more cash back or points for online purchases, advises Andrea Woroch, a consumer and personal finance expert. For example, the card_name allows you to decide which category you will earn 3% cash back in, with online purchases as one of the options, she explains.
2. Check your interest rate. In the event you rack up a balance you can’t pay off, you will have to pay interest on those purchases. “Look for a card with the lowest interest rate but do your best at tracking purchases and staying below your budget so you [don’t] get into debt,” Woroch says.
3. Understand purchase protection and other benefits. Some credit cards offer extended warranties while others may provide additional perks for online shoppers such as purchase protection against theft or damage. Select cards from Visa, Mastercard and American Express offer some version of this benefit. Check the duration period from when you purchase the item and how much is covered to know if you can file a claim, says Woroch.
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Tips for safe online shopping
If shopping online with a credit card, following these tips can help keep you safe:
- Only shop while connected to a secure network. Woroch warns never make a purchase and share banking details or credit card info on a public/free Wi-Fi network like those found at retail locations, airports or coffee shops as hackers can be lurking and steal that info.
- Shop with reputable retailers and check return policies before buying. If you have to cover return shipping fees, you may be better off shopping for the item from alternative retailers who have a local storefront where you can make the return or exchange for free, suggests Woroch. “Or, shop with an online store that offers free returns,” she adds.
- Skip unknown links and emails. If you don’t recognize a sender, or if the site looks suspicious, don’t click on it.
➤ SEE MORE:Is it safe to shop online with a credit card?
How to maximize your rewards with online purchases
Rewards earned on online shipping can include points, miles and cash back. Here’s how to boost your rewards with an online shopping credit card.
- Get retail rewards in addition to what is offered by your credit card by signing up for a store’s free loyalty program. “Perks may include free shipping, free returns and more,” says Woroch.
- Refer family and friends to earn extra rewards. Many retailers offer referral programs that allow both the customer and referred friend a discount or incentive to shop at that store.
- Shop through cash-back portals. Platforms such as Rakuten and CouponCabin.com can earn consumers additional cash back on top of any rewards earned by a credit card or retail program. There are also sometimes bonus cash-back opportunities through credit card issuer shopping portals that consumers can take advantage of.
➤ SEE MORE:Can you get a credit card for online shopping with bad credit?
