Online Shopping: Debit vs. Credit Card

When it comes to online shopping, consumers are required to shop with a bank card that allows for instant transactions and, more often than not, the card that allows the fluid transaction of funds is a credit card. However, making consistent use of a credit card can result in mountains of unnecessary debt, while a debit card requires more control.

However, if you own an online store and invite consumers with all types of spending habits and card types, you will need to ensure that you have invested in a secure and reliable payment gateway. Yet, if you are the one behind the computer screen, scrolling through numerous pages of shoes or designer handbags, it is always a good idea to fully understand the implications of using one distinctive method of payment. If you’re looking for an answer on which type of card is better suited to online shopping, the answer is: both. If you’re looking for more clarity, take a look at the difference between making use of a debit card and a credit card when you’re shopping online:

When you’re using your debit card:

When using your debit card, it is often necessary to provide a pin code which can prove a challenge when trying to purchase items online. However, there are payment gateways that allow for the use of debit cards – consumers should, however, check the site before proceeding with payment. If you are an entrepreneur, it is important to know that when a consumer uses a debit card for a transaction, it is the closest thing to an actual cash transaction, and often has lower transactional fees than when using credit cards.

When you’re using your credit card:

When making credit card payments, it is important to take note of the fact that payments are often not processed immediately and can take up to 72 hours to go through to the merchant. Credit card payments also often command higher transactional fees that are to be paid by the merchant, and can result in more expensive merchandise in an effort to cover the additional fees.  

Regardless of the type of card that you choose to use when shopping online, it is important to ensure that you only shop from retailers that boast a reliable and secure payment gateway. If you do not ensure that you are buying products from a reliable source, you risk the chance of credit card fraud. Finding an online store that offers secure payments should be as important as finding the item for which you are searching.

If you are in the process of setting up an online store, be sure to contact PayU for a quote on a payment gateway that accepts a variety of cards, offers multiple payment methods and guarantees safe transactions – we guarantee that you won’t be sorry.