Know Everything Before Using a Credit Card or Debit Card for Shopping

The use of debit and credit cards is inevitable so it helps know everything about them before using credit and debit cards for shopping.

A recent report published by the Economic Times showed an FSS Payments Trend report wherein the average amount for debit card transactions on e-commerce were $13.4 billion whereas for credit cards it reached $54.4 billion. 

However, the number of transactions using debit card stood at 589 million exceeding the number of transactions processed using credit card which was 201.4 million in the year 2018. The statistics indicate even if there is a significant rise in value of credit card transactions and number of debit card transactions, the overall spending using such cards have increased. 

Subsequently, the usage of debit and credit cards has made their place in shopping. But, it is wise for users to know everything about them before they start using credit and debit cards for shopping.

Know Everything Before Using a Credit Card or Debit Card for Shopping

Difference between a credit card and debit card

Credit cards can be used for making purchases, withdraw cash, balance transfer, etc. wherein an individual doesn’t have to pay money immediately. A bill is generated after completion of the billing cycle, which is to be paid by the candidate within the grace period to avoid paying interest on the bill. 

Debit cards  let individuals spend money from the amount they have in their bank account. While purchasing in retail, grocery, or any other store, the amount of purchase gets debited immediately. 

Nevertheless, using credit card for shopping may benefit you in several ways that you aren’t yet aware of. 

How can credit cards aid your shopping experience? 


  • Welcome bonus 

Whenever applicants opt for a new credit card, they are entitled to welcome bonus based on their eligibility, income, and credit score. Unlike debit cards, few financial institutions provide free credit card welcome bonus up to Rs.55, 000 to new users. 

  • Cashbacks and reward points 

Shopping is an integral part of all our lives right from the purchase of grocery to purchase electronic gadgets and more. Choosing the right credit card by your purchasing habits will help you gain reward points for each spends you make via these credit cards. You can redeem your credit card reward points by utilising them while shopping or by purchasing available discount vouchers provided by your lender.  

In addition to this, free credit card cashbacks can be availed in the purchase of specific products or spend on specific brands or outlets. 

  • Interest-free cash withdrawals

Similar to debit cards, individuals can withdraw cash from credit cards as well. This helps users shop in those outlets as well who do not accept card payments. Bajaj Finserv RBL Bank SuperCard is one such credit card that allows users to withdraw funds from their credit limit and utilise it without any incurred interest for 50 days. 

  • Converting a big purchase into affordable EMIs

When a consumer is purchasing high-value products such as mobile phones, laptops, or anything else, they can convert the amount into easy estimated monthly instalments (EMIs) by making payments through credit cards. The same is not possible in case of debit cards. So, this could be a major difference between credit card and debit card usage for shopping. 

When can a debit card be useful for shoppers? 


  • For limiting spending habits 

Individuals who have a spending habit can limit their purchases while shopping using debit cards as they do not get extra funds that can be spent. Difference between a credit card and debit card is such that with debit cards you will be more in control of where you spend your money on. Whereas, not knowing how to use a credit card wisely may put you in a debt trap. 

  • No interest at all for payments or cash withdrawals

Debit card bearers do not have to pay any interest as they are withdrawing money from the fund they have in their financial account.  

While there could be many individuals who need to control their spending habits, smart spenders can make use of credit cards and maximise the benefits availed in shopping.

Money Journey

Money Journey

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