Online Shopping Credit Cards

Pauline Hatch     

We all use credit card for online shopping, so it’s important to understand what type of credit cards are best for online transactions, and what to do if something goes wrong.

The digital economy has ushered in an era of online bargain hunters. Most have credit cards at the ready, but sadly they aren’t always the appropriate credit cards for use online. There are a few things to consider before whipping the plastic out from your wallet. There are surcharges to consider, and you will want to know the returns and delivery policy of any retailer you use. On top of that, many internet retailers are actually based overseas, which means you could be up for currency conversion fees, and then will add to your total purchase price – often enough to cancel out any discount you might be getting. The main recommendation we make is to choose a credit card that won’t charge international currency conversion fees, because this will save the majority of online shoppers money at some point. This type of credit card is usually a better deal than store cards or loyalty cards, but you might also want to choose one with decent rewards. Using a frequent flyer credit card and redeeming points online for merchandise can be unwise too, unless you’re sure that the points value of the product you’re choosing really adds up. So, which cards make the grade when you don’t want to get off the couch?
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Enjoy the benefits using these cards for your online shopping.

Which perks suit online shoppers?

When it comes to shopping online and credit cards, you’re probably going to be interested in a card with these features:

  • Long interest free days on purchases (55+) so you get a bit of breathing space to pay if off each month without paying interest
  • A reasonable ongoing purchase rate, one below 15%
  • Extended warranty and purchase security
  • No international transaction fees
  • Bonus rewards points. This can be an offer when you signup, or bonus partners with online outlets where you will be happy to spend on the card

Why use a credit card and not a debit card?

Debit cards are a good choice for anyone who can’t control the amount they might spend online, and the amount of debt you can get in will be limited, but using a credit card can still be useful for both convenience and security. If there is a sale item you want to buy on the day, a credit card can help you get it and you can transfer the money back when you do have it in your bank account. Credit cards are also increasingly useful for transactions that might end up in a dispute too. Credit card companies have a strong interest in making sure transactions are processed correctly, and because the funds might not be transferred instantly, any fraudulent or disputed transactions can often be stopped before money has moved between the banks. This makes a difference to you because disputes on credit cards are often resolved much more quickly and efficiently than if you had used a debit card and your bank account.

Using a PayPal account with your credit card is also touted as the most secure option for making and accepting payments online, especially when the sale is a private one via a site such as eBay or Gumtree, and not through a major retailer.

Tips to find the best online shopping deals

A search for online shopping deals will bring up pages and pages of results for both deal listings and online stores. While it’s great to have so much variety, it also takes a lot of time to go through them all.

So what does it take to find the best online shopping deals for exactly what you want? Organisation and focus are key elements of the process.

In fact, a popular Lifehacker article from a few years ago suggests that keeping a list is one of the easiest ways to find the right deals when you shop online. But unlike regular shopping lists, you can create wish lists with whatever online stores you like to shop at – and often these stores will let you know when what you want is on sale.

Not only will organisational tools like wish lists help you find the best online shopping deals, but it will also help you stick to what you want to buy and could save you more money as a result. Other ways to find the best online shopping deals include:

  • Comparing prices between a few websites,
  • Considering the total cost with shipping,
  • Subscribing to online store newsletters,
  • Sending an enquiry to see if a store will price match
  • Becoming a member of loyalty programs; and
  • Buying everything you need during sales season.

There are also a growing number of online-only sales that can make it easier to get the best price on anything you want. While some online stores have their own exclusive sales, independent promotions like Click Frenzy are also a great opportunity to buy a lot of things that you need at the best possible price.

It’s also important to consider the terms and conditions of any store you shop at online. The return policy, shipping and other additional charges, and the privacy policy are all particularly important when you shop online so that you avoid any nasty surprises at the virtual checkout or further down the track.

The bottom line is that online shopping has a lot of great deals but there are still times when you could pay more than you want. But staying organised and following the guidelines above will help you get the best deals as often as possible.

Tips to find the best online shopping deals

A search for online shopping deals will bring up pages and pages of results for both deal listings and online stores. While it’s great to have so much variety, it also takes a lot of time to go through them all.

So what does it take to find the best online shopping deals for exactly what you want? Organisation and focus are key elements of the process.

In fact, a popular Lifehacker article from a few years ago suggests that keeping a list is one of the easiest ways to find the right deals when you shop online. But unlike regular shopping lists, you can create wish lists with whatever online stores you like to shop at – and often these stores will let you know when what you want is on sale.

Not only will organisational tools like wish lists help you find the best online shopping deals, but it will also help you stick to what you want to buy and could save you more money as a result. Other ways to find the best online shopping deals include:

  • Comparing prices between a few websites,
  • Considering the total cost with shipping,
  • Subscribing to online store newsletters,
  • Sending an enquiry to see if a store will price match
  • Becoming a member of loyalty programs; and
  • Buying everything you need during sales season.

There are also a growing number of online-only sales that can make it easier to get the best price on anything you want. While some online stores have their own exclusive sales, independent promotions like Click Frenzy are also a great opportunity to buy a lot of things that you need at the best possible price.

It’s also important to consider the terms and conditions of any store you shop at online. The return policy, shipping and other additional charges, and the privacy policy are all particularly important when you shop online so that you avoid any nasty surprises at the virtual checkout or further down the track.

The bottom line is that online shopping has a lot of great deals but there are still times when you could pay more than you want. But staying organised and following the guidelines above will help you get the best deals as often as possible.

Summing up

Online shopping and credit cards go hand in hand, so it is a good idea to consider the different ways one affects the other.

As MoneySmart has noted, “Whether we are doing the weekly food shop, booking holidays or buying that special gift, more and more of us are turning to the internet to buy goods.”

Paying with a credit card, the organisation says, can give you extra protection, “including the right to a 'charge back' if you fall victim to fraud”. But the benefits you get from shopping online with a credit card still vary from issuer to issuer, so reading about all of the different features available means you will be able to choose the best credit card to use when you shop online.

Keeping up-to-date on internet fraud and online shopping risks, on the other hand, will help keep your credit card details and personal information safe. So whether you shop online all of the time or only rarely click to buy, being aware of the elements outlined above means that you can make more informed decisions to stay safe and reap the rewards of shopping online.

Pauline Hatch

Pauline Hatch is a personal finance expert at Creditcard.com.au with 8 years of finance writing under her belt. She loves turning complex money concepts into simple, practical actions so you can win financially. You can ask Pauline any questions by submitting a comment below and get a personal reply.

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verushka

verushka

4 July 2022
Hi! I want a credit card with a low limit to use for online shopping only. It possible I would like to earn rewards/ points on it.
    Pauline - CreditCard.com.au

    Pauline

    6 July 2022
    Hi Verushka, you’re definitely on the right page to compare online shopping credit cards. All the cards above earn rewards, except for the NAB Straight Up, which features a low credit limit and no international fees. If you’re looking for a pure “rewards credit card” - you can read our card reviews that also contain the minimum credit limit you’ll get. Happy shopping!
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