Business credit cards have witnessed an unforeseen growth in India in the last decade. It is primarily due to the increasing popularity of this alternate payment method. Credit card payment has seen a substantial surge in both online and physical retail points, and individuals are availing this tool to streamline their finances as well as create an alternative method of funding in times of emergencies. As such, more people are signing up for credit cards to enjoy the host of benefits and features this financial tool has to offer.
There are several things you need to know before you decide to route all your purchases through a credit card. It involves coordinating with your financial institution, taking care of various security measures, and a sound understanding of the different aspects required to utilize a feature rich credit card. Here are some critical factors you should consider before you start using your credit card for both online and offline transactions.
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Understand the organisations involved
Utilizing your credit card to pay for your business and personal expenses can involve various parties. These parties are instrumental in conducting the transaction made via credit cards securely. It is of paramount importance that an individual understands how the credit card payment ultimately reaches the vendor. You will also have an easier time to resolve any issue or discrepancy on your credit card bills once you grasp the entire methodology.
There are primarily 3 organisations involved in handling the finances. A merchant will offer account services to a business where the funds will be transferred from an aggregator. Aggregators are third-party organisations that facilitate credit card transactions. They route the necessary information to the correct payment network and redirects the funds to a financial institution. Merchants and aggregators differ in their practice as merchants process the money, but aggregators process the transactions.
Credit card issuing organisations and the brand of the card also plays an essential role in the process.
Potential to earn various benefits and rewards
Integrating online credit card processing in any business can come with multiple advantages. Credit cards often run several loyalty and reward programs that provide you with several benefits. You can earn bonuses for reaching certain spending milestone, enjoy discounts from retailers, and earn reward points against the money you spend. You can even enjoy discounts on flight and hotel bookings with your credit card.
These cards are also helpful for first-time users who want to establish a good credit score. If you maintain a history of timely repayments and do not default on the same, you will witness a significant improvement in your credit score.
Data security is an essential criteria regardless of the type and size of your expenditure. The aggregators and merchants should have the latest security protocols in place to keep your online credit card transaction details safe.
Some of the latest data security standard includes SSL (Secure Socket Layer), E2EE (End-to-End Encryption) and TLS (Transport Layer Security) 1.1 or 1.2 to encrypt card and customer information while it transmits between servers. It also includes the 3-digit CVV (Card Verification Value) to protect against any fraudulent transactions.
Fees and charges
A financial institution may charge various fees and charges on a credit card. These typically include joining fee, annual charges, finance charges on retail purchases and cash, etc.
You should choose a financial institution that levies the minimum fees and charges to prevent it from burdening your overhead cost. For example, Bajaj Finserv RBL Bank SuperCard charges a flat Rs. 250 every time to choose to repay your dues in cash. It frees you from paying a varying rate while making repayments.
The SuperCard also brings several industry-first features like an emergency loan, easy EMI option for making a credit card payment, interest-free cash withdrawal from ATMs, etc. These features make it one of the best credit cards available in India today.
Bajaj Finserv also provides pre-approved offers on these credit cards along with other financial products and services like personal loans, home loans, business loans, etc. Such offers not only simplify the process of financing but also help you save time during the process. You just have to provide some necessary details online to check your pre-approved offer.
Online credit card processing can streamline your transactions, reduce the time taken to transfer funds, and improve the security to a significant extent. Careful consideration of the factors mentioned above can help you choose the best option to manage your commercial and personal finances proficiently.