The credit cards system is spread all over the world. This is now the most popular way to purchase goods and pay bills or taxes. Yet at the same time, this system is also very vulnerable. When a credit card is stolen or lost, unauthorized persons can use its number illegally, and a great amount of money will be lost. There are some precaution measures to be taken to make the transactions more secure, such as the one time single use numbers.
But the credit card’s advantages are so important that their use become almost universal. One of the major advantages is called “buy now, pay later”. This opportunity is allowing people to use the grace period to purchase goods and pay much later. The incentives are another major advantage. Credit cards issuers are offering loyalty schemes, attractive point reward systems and air miles. The credit card owner can make excellent savings using its credit card often and always paying off the balance when he has a good reward scheme. Incentives are often changing, and the new reward systems are more and more attractive.
No cash needed is, maybe, the main credit card advantage. The cardholder is carrying only a small plastic card in his wallet. The cardholder will not make payments in cash; he will not worry about the robbers tempted by an attractive wallet… Many transactions are made everyday using credit cards. Cash not allowed is an important condition when someone wants to rent a car or check to the hotel. Often the credit card is used as a deposit.
Free insurance is provided when someone books a holiday or an airline ticket if the customer buys using a credit card. It is wise to check if it is on offer with the credit card. The purchase protection is another advantage, insuring the buyer when he is purchasing faulty goods. They are normally 100% insured for a few months. Some insurance covers the loss too. The loss protection is a useful feature. If a person needs to purchase a good and he loses the money, this is his bad luck. But if he has a credit card, the problem will not occur. A quick call to the credit card company to cancel the card will avoid any problem. A new credit card will be provided in a few days. Any issuer can have his own conditions, but if the credit card number is stolen and the actual credit card is in its owner possession, the issuer can state that the owner liability is null.
Credit cards are also presenting another kind of advantage: the travel advantages. If someone needs to travel and must change its money (from USD to Euros, for example) he can have he unexpected surprise to get a very poor exchange rate. He will also need to pay some commissions at the bank. The credit card is making these operations more cost-effective and much simpler. Most countries accept all major credit cards, especially hotels and tourist resorts.