Why the Shift From Cash to Credit Cards?
Debit has always acted like a hero for finance companies. With digitalization, people have started opting for credit card payments to sustain in this expensive world. Two of the critical trends circling the credit cards are as follows:
The Ease of Contactless Payment
Several people have started using contactless payment methods to pay at stores. There is also an increase in the use of credit cards for online shopping, even for everyday items, including groceries. Many people prefer this mode of payment.
A lot of consumers are facing a cut off from credit by lenders tightening the underwriting. A few people prefer to use credit cards to overcome any future discrepancies during times of economic uncertainties. However, statistics show that every time there is a dip in the economy, there occurs a decline in credit card usage.
A credit card acts as a tool that you can align with your lifestyle. Many credit cards offer reward points to the users as a mutual gain to both parties.
Travel Reward Credit Cards
If you are a frequent traveler, a travel reward credit card can offer high-end benefits. Travelers can earn mileage or discounts on travel packages and hotel stay with travel reward credit cards. There exist bank cards that are an excellent option for general travel. In addition to that, branded cards offer many discounts on flights on particular airlines and travel modes or certain hotel chains. One can easily leverage all such benefits by opting for a travel reward credit card.
Some reward credit cards offer specific points for every dollar spent. If you are a frequent purchaser, you can end up earning many bonus points in a short timeframe. Other deals need you to make a payment up to a certain amount to obtain double rewards. A few travel reward cards double as branded cards.
Many airlines have partnered with financial institutions to sort all bells and whistles and provide the users with added discounts and benefits. Some airlines offer credit cards that can help you accumulate frequent flyer points for several activities, such as free checked luggage, preferred boarding discounts with partner joints, and so on. You can opt for a visa frequent flyer credit card and leverage the benefits in light of this.
Hotel Reward Cards
Hotel reward cards offer similar benefits as a travel reward card does. You can use the hotel card to earn leverage towards room upgrades, free stays, extended checkouts, and discounted rates. Many credit card companies offer free stays at their partner hotel chains on the card’s renewal anniversaries or other events. In light of this, keep a keen eye on the discounts and the credit card company’s events.
The key is to pay attention to the fine print of earning the points and redeeming the same. Many travel reward programs need you to cover your taxes during the redemption process. Therefore, a free flight might not turn out as free of cost.
One thought on “Why the Shift From Cash to Credit Cards?”
But as with just about everything else in 2020, there is a large caveat to drawing conclusions: the COVID-19 pandemic has been one of the largest behavioural disruptors in world history. Cash is no exception. With many shops shut, people have been forced to buy online; similarly, those who have gone out have been put off by health-risk worries about passing cash back and forth. Financial service providers in many countries including the UK, Netherlands, Belgium, France, Germany and Luxembourg have also raised the amount customers can spend by tapping a credit or debit card to encourage movement away from handling physical money.