Credit Cards For Online Shopping For Discount

Discussion in Shopping Discussion started by naruto100 • May 27, 2017.

  1. naruto100

    naruto100Active Member

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    Hello..

    These days I have seen that online shopping sites offer good discount for using credit card. I wonder what is the reason behind it. Honestly even I was having credit card I have never used it as I have heard lots of negative thing about it that later on I may have to pay lots of charges. Not sure if it is true.

    But what can be the reason behind this discount for using credit card on shopping sites. Is there something hidden? I mean what if I have to pay heavy interest by using credit card.
     
  2. moneymania

    moneymaniaActive Member

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    I remember when I am walking in the mall, I occasionally come across those "credit card salesmen" that stops people that are walking by and asks them a few questions to know if they qualify for a credit card, and they lure them by telling you that you will "win" a prize if you sign up for a credit card. I never really get interested in their offers, because paying with a credit card always means that you will pay more because of the interest. I guess whatever discount you will get will be useless because you will still pay more because of the interest.
     
  3. naruto100

    naruto100Active Member

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    @moneymania@moneymania Yes even I have ignored them every time I went to some mall.

    But I wonder if schemes offer by online shopping sties are kind of trap or something. They do offer heavy discount, but I don't know if it end up in paying more or what. I am not user of credit card, so I don't have more knowledge on this.
     
    #3May 30, 2017
    Last edited by a moderator: Jun 12, 2017
  4. moneymania

    moneymaniaActive Member

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    I think there is a tie-up with those stores that will give you a discount if you pay using a credit card. I think it's just a misleading tactic so that you will buy using your credit card thinking that you will be getting a discount and a lower interest rate than usual.
     
  5. naruto100

    naruto100Active Member

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    @moneymania@moneymania I don't know exactly as I have never experienced it by my self so far. But I guess it can go to anyway. Either it can end up with customer profit or loss. Only experienced user can tell about it.
    Personally I think it is kind of trap. Not sure, I just feel like that.
     
    #5Jun 1, 2017
    Last edited by a moderator: Jun 12, 2017
  6. Jamille

    JamilleActive Member

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    If you're paying your balance in full, there's no reason why you should be charged for interest. In addition, even if you do have a carrying balance, you'll not be charged more than the interest rate being charged by your credit card provider.

    Online shops are probably offering discounts for credit card purchases because this payment mode assures them of payment upon checkout. You can compare this with COD where the items had to be delivered first before they can collect payment. The COD term may even become problematic for stores for reasons like failed delivery or a buyer who can't be located.
     
  7. Jasmin Cottontail

    Jasmin CottontailActive Member

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    I have only tried using prepaid credit cards for online shopping so I had no problems with interest rates. There are some online shops that charges high interest rates depending on the price of the item that you've purchased and you'll only incur interest rates if you get the item on installments, but not if you pay outright. The thing is some online shops are upfront and honest about their terms and some aren't so it's really important to be careful before jumping in to these kinds of deals.
     
  8. morgoodie

    morgoodieActive Member

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    I have applied for a store's credit card to get a discount on my purchase. If I qualify, I will pay the balance on the card and probably never use it again. Sometimes, you can save a significant amount at the time of purchase. Periodically, they will send coupons and other discount offers to their card holders as a way of getting you to come back and use your card for more purchases. As long as you pay on time and the full balance, you shouldn't have any hidden charges. It is important to know what your interest rate is and whether it is an introductory rate which will change once the time period of the special rate is over.
     
  9. Shine_Spirit

    Shine_SpiritActive Member

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    This is a good alternative, but we must be aware of the possible rates that tend to come in parallel. These are the traps that make our pockets a little heavier.
     
  10. Zero

    ZeroActive Member

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    Exactly, most companies are fully aware that a lot of people get easily attracted to when they see discounts or promotions.
     
  11. LesY

    LesYMember

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    I think most online discounts are legit, the "trap" is you usually end up buying more that what you were searching for (I'm guilty of that). If you know your credit card interest rate and you don't overspend and are able to pay the full balance per month there shouldn't be a problem.

    The problems generally start when you spend more than you can pay per month or when you didn't calculated correctly the amount you will be paying for the pending balance.
     
  12. naruto100

    naruto100Active Member

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    HA ha.. That's quite straight forward and logical answer for this. I never used credit card so far so I don't know about interest rates and how they get cut down. But yes if we know the limits and all the calculation, then I don't think in the end we will end up paying more. As every thing is having advantage and disadvantage. So only thing is that it is in our hand to take advantage.
     
  13. overcast

    overcastActive Member

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    Using online wallets like paytm and paypal can be more secure. As they are going to mask your credit card details. And it can be safe for getting the refunds. So it'd be reasonable to make use of the wallets. And they can make your services and products lot cheaper in that way as well. That's what I have learned over a period of time. I don't know how many people are into shopping on regular basis though.