Are credit cards boon or bane?
Before a person opts for a credit card,
it is important for people to know if
credit card usage is a boon or
otherwise. The answer to this question
is primarily dependent on the way a
person uses his or her credit card. When
a holiday in a foreign land is opted
for, one will realise the advantages of
having a credit. It is also a safer
option to use credit cards in comparison
to carrying traveller’s cheques or
money. If the dues are paid on time,
then it is a safe option to use credit
cards. However, the fact is that credit
card firms prefer people who make more
purchases and delay payments. Many
people fear buying goods online by
swiping their credit cards. The very
thought of burglars attempting to rob
information on the credit card is
In such scenarios, cards that have
disposable numbers are more popular with
the customers as well as to the
businesses. The credit card issuing
firms come up with random numbers that
are intended for onetime usage. The
validity of these numbers remains with a
website from where a purchase is made
and they are valid for only a short
duration. This feature increases the
difficulty level for robbers as the
information obtained proves to be of
little help to them. Both the consumers
as well as the online retailers benefit
from this feature provided by disposable
cards. The level of risk gets reduced
considerably with regard to the credit
card information or the transaction
details. Retailers can verify and
validate a transaction immediately.
Hence, they need not worry about charge
backs due to fraud.
However, the major drawback of
disposable credit cards is that they are
not feasible for a few transactions.
Almost all the retailers require that
the card is shown during the retrieval
of an item after a purchase is made.
This holds true in case of hotel and car
rentals as well as theatre and airline.
Sometimes, the card numbers expire when
another payment has to be made. But, for
many people, a disposable card number is
a safer online shopping option.
The methods to lower the interest
applicable on your credit card:
The one factor hated by most people with
regard to credit cards is the interest.
Interests are added to an account every
month which gets charged for borrowing.
It is a method to mint money by adding
interests to account holders. Without
these interests, the credit card issuing
firms would get very little income.
However, with a consumer’s point of
view, the credit card interests could
sometimes be hard hitting. Sometimes, it
is very difficult for many people to pay
even minimal amounts. It is a matter of
concern when the interests keep rising.
One method to counter high credit card
interests is to negotiate with the
providers. Negotiating with a provider
could either lower the interest rates or
a credit card with low interest could be
one of our helpful account
representatives to assist you in the
high risk merchant account or
offshore merchant account for a
high risk merchant.