Credit card alternatives

Credit cards are crucial for many business transactions. They have enabled fast payments, especially online.  The credit boosts you get, interest rates promotions and ability to earn major rewards online through credit cards has made the usage of credit card to make online payments very simple.

While credit cards are very useful, you have to be cautious while you are shopping online. You never know if your information is really secure while you are shopping online and leaving your credit card details of different sites. You face a high risk when you use your credit card to make payments online. You might face some level of inaccuracy, misrepresentation of prices and even fraud.

To avoid all the risks related to credit cards, you should try the following alternatives.

Use prepaid/debit cards

Accessibility of your pre-paid credit cards makes it so much more convenient. Debit cards are much more convenient than personal credit cards because there is a limited access to the account by potential scammers. With a prepaid card, all you have to do is load the exact amount of money you need to do and when that is over you can add more when you need to.

You do not have to spend as much as you would with a credit card when you make the purchase online. Debit cards have less risk because they are connected to a checking account. You only spend what you have in the account and nothing more.

Use a check to purchase products

Some online businesses will allow customers to make the payments with a check. This might be a difficult option for many but is actually better than using your credit card in terms of safety. All you need to do is send a check to the company and wait for it to clear.  After that, you can access the products and services (items you bought) from the company.

Electronic wire transfers

Many online businesses accept electronic fund transfers.  For this, all you do is transfer the money from your checking account to the business/store’s account.  Once you have the checking account on your profile, you can make the transfer securely. The details needed for this kind of transfer are the routing number, name, address and account number. You can also use an electronic wallet, which is different when compared to the personal credit card payment. In the electronic wallet, you transfer your money from your debit account and use the digital wallet to pay for the transaction.

Wire directly from your bank

If you keep savings in your bank account, you can use that to make payments online instead of going for the personal credit card. It is just a standard wire transfer from your bank account to the recipient’s account which is easier and cheaper when compared to using a credit card.

Final word

Using credit card alternative will prevent issues like credit card debt, low credit score and high maintenance fees. Personal credit cards may have major benefits but can also lead to a major loss.