A growing number of consumers make purchases online in the United States, the country famous for its technological advancements. There are a variety of credit card options available, not only helping shoppers enjoy luxury items that are beyond their financial reach but also optimizing discounts applicable to online shopping. Based on this significance, we aim to scrutinize and analyze several available credit cards solely designed for online shopping and pick out the top five for U.S. shoppers to use. To facilitate shopping for all essential and non-essential items online without facing financial constraints, various credit card facilities are available in the U.S. to offer assistance in this regard, such as fee discounts, sign-up bonuses, benefits for traveling, cash back, and lucrative rewards. With the rise of the internet and online banking systems, the use of credit cards for online shopping has gained popularity. There are various policies used by different banking systems to attract new customers as well as retain their existing customers. After in-depth analysis and discussions, our main goals highlighted throughout the paper are to determine the best credit cards among the various options available for shoppers in the United States. Thirty-four existing credit card options are explored that are available only for a very specific shopping niche: online shopping for all sorts of necessities and luxuries. Later, some of the best options are highlighted. For analyzing and discussing our subject matter, four main categories are defined: fees, rewards, credit needed to apply, and benefits and privileges. In terms of fees, annual fees and annual percentage rates are deliberated, and in terms of rewards, initial bonuses and other bonuses are discussed.
The purpose of this study is to review and analyze the best credit cards for online shopping. The reviews provided in this study will guide e-shoppers in choosing a credit card that suits their online spending habits and preferences. Since online shopping can range from budget-friendly to luxury, consumers will review the range of rewards and benefits offered by different credit cards to choose the right one. In addition, rewards can be tailored to those who already have a credit card that offers online purchase rewards. Some dedicated online shopping rewards credit cards may have target benefits suited for a typical user. To increase the credibility of the study, the main features of every current credit card are the main focus of the reviews. The advantages and disadvantages of each credit card should also be disclosed in this study to make way for a comparative analysis. An in-depth analysis of how each credit card can help online shoppers save money, as well as the different interest rates, is beneficial to the audience, including online shopping enthusiasts and newbies. Consumers who shop online often are also the target audience of the study; therefore, this study is confined only to those living in the United States.
Nowadays, with many online shopping and credit card alternatives, e-shop owners should do their shopping to get the most value. Many consumers are spending more money online, and a study that provides a simple analysis of some of the best credit cards with rewards for online shopping can be beneficial. As a result, consumers can make educated decisions. They may not realize the value of credit cards, which offer the most benefits for the things they purchase the most. Moreover, including these initial elements can establish the basis and relevance of the findings and make them useful to consumers. By doing so, e-consumers will be inclined to train themselves in saving opportunities while being exposed to the concept of rewards. Furthermore, identifying the research’s focus can indicate what has not been included in previous reviews. This study aims to bridge the gap in literature by presenting a focused discussion on the best credit cards for shopping online.
Research design. This research employed a qualitative methodology, focusing on desk research and an inductive approach, following the principles of qualitative credit card analyses. The aim was to provide a systematic view of the optimal credit cards for online shopping in the US. Credit card choices depend on both individual needs and the cards’ fundamentals, such as fees, benefits, and interest rates, as well as the quality of customer service. As such, it is critical to show the fundamental, typical indicators following credit card shopping data. Both qualitative and quantitative analytical strategies were implemented, using diverse sources. A quantitative approach was adopted to ensure a sound, usable dataset on credit cards; qualitative research gathered expert and customer judgments on the actual benefits and usability of the best credit cards for e-commerce. The research was designed for transparency, investigating three main indicators on the best credit cards for online shopping: fees, interest rate, and customer satisfaction.
Data and sources. An analysis of available credit cards was performed based on a list of the biggest US banks and consumer survey data on the use of credit cards or online shopping habits. Credit cards affiliated with eligible banks aiming to discount the card’s first use, offer 0% introductory rate for a short term, or that highly specialize in a limited range of shopping did not qualify for research. The field of criteria was left quite intense in order to cast a safe spider web for the field of shoppers in terms of the rationality of the range of offers. Also, evaluations of the offers highly specialized in groceries, petrol, and travel were not included. Other discounts and rates that are less special to the selection of a credit card, like cashbacks, were maturely evaluated in the field of the source.
In recent times, consumer behavior has continually shifted towards the convenience of shopping via the Internet, and the United States is no exception. E-commerce platforms in the U.S. have been growing at a rapid pace, and as a result, global e-retail sales are expected to reach 27.2% by 2021. Offering a broad range of services and products delivered right to one’s doorstep, digital shopping has grown in popularity among various demographics for its convenience that resonates with the modern lifestyle. In the U.S., retail e-commerce sales are expected to increase significantly, from 365.2 billion U.S. dollars in 2021 to 554 billion U.S. dollars in 2024. Approximately 288.3 million consumers will be purchasing products and services equipped with a mobile device as of 2024. Due to the high accessibility of mobile technology, 86% of consumers make use of applications to complete their shopping.
As a result, purchasing habits have seen dramatic shifts in the U.S. The rapid advance in digital payment technology and digital apps has sparked an evolution in how and where consumers expect to rely on these advancements to settle their bills. Customers and merchants alike are attracted to the many benefits of these non-cash payments, not least because growth is steady. Since 2003, ACH growth has been strong, with double-digit growth in 2019. In the United States, credit and debit cards reign as preferred payment methods, with new features being incrementally added to meet the demands of modern citizens in terms of security, speed, and customization. Providing ways to apply specific rewards such as cash back or discounts, frequent flyer miles, bonus hotel points, travel credit, and so on, these credit cards are appealing to all those who shop online and are avid Internet shoppers. Providing a detailed look at what each one has to offer, we have compiled a list of the top credit cards currently available on the market.
1. Introduction E-commerce has grown rapidly in the United States, increasing by 43% in just two years. By early 2020, monthly online shopping penetration exceeded 200 million consumers, and with 30 million orders placed for furniture alone during the quarter ending in June, market consolidation led stocks on online home goods platforms to explode. While technological advances like mobile commerce and social shopping, as well as the rise of direct-to-consumer businesses, have kept this trajectory on a steady incline, it’s difficult to ignore the significant boost online shopping experienced as a result of last year’s shift in consumer behavior. For a concept that made its appearance just a few decades ago, online shopping has gone through a remarkable evolution in the U.S. Thanks to cloud computing and AI, the systems of the best e-commerce platforms are armed with built-in capacity to fast-track data collection and learning. In turn, platform users are better able to act on and respond to consumer buying trends while also allowing for increased flexibility and, in some cases, a complete break from third-party online marketing firms, as is the case with influencer-driven luxury fashion brands. For consumers, these advancements translate to an ever-growing list of touchpoints, and yet no sixth sense is required to navigate the processes of search, sale, and shipping. Time will ultimately determine which of the above trends are to stay for the long term, but what’s already clear is how much influence consumer preferences have had in shaping the marketplace. And that’s where credit card offerings deserve more attention. Successful credit card offerings must reflect current consumer behavior while also preparing for future changes in the e-commerce landscape. It is increasingly important that e-commerce credit cards keep up with these trends, as for most cardholders it’s online shopping experiences that drive usage.
Consumer behavior towards online shopping can be driven by the ease and simplicity of ordering, a larger variety of goods and services, high levels of availability, and low prices. As services like same-day delivery arise and the marketplace increasingly resembles a bazaar, some could predict that online shopping will become the de facto channel. However, it would be a simplification to discount the store in this manner. The aspirations and perceptions of an immersive experience in traditional retail appear to continue to bring shoppers into a physical store to browse or to test products, which they will then purchase online. Because of this, retailers should not completely relinquish their investment in traditional retail, as some online shoppers could be more receptive to in-store engagement once the difficulties of accessing a trusted technology brand have been overcome.
The desire to transact online does not necessarily convert to online brand loyalty. A significant portion of the sales margins for online stores has been reported to be determined by upselling. By harnessing the power of social proof and leveraging secure transactions and service, along with a good returns policy, brands can begin to convert a traditional, store-reliant shopper into a user of online shopping. Strong decision-making, such as the use of online customer reviews generated during prior shopping experiences, can further support the sale of higher-margin goods. By understanding the decision-making process in more depth, brands can ensure that personalized recommendations on automated platforms lead to increased loyalty, confidence, and margin. Online shopping purchases driven by promotional discounts and rebates will add a further dynamic to shoppers’ selection-making. A person who would not otherwise purchase the product may be motivated by a promotion to try a brand. When the brand or product is better than expected, they will purchase at the regular price, converting from an acquisition consumer to a retention consumer. It would be prudent for the individuals purchasing the discounted product, perhaps otherwise not in the market, to be included in the sample selected to complete the model of whom to target. The promotion was successful because it gave rise to a different form of consumer who valued the product purchase but got it on a deal when they did.
Online shopping credit cards are another way for shoppers to receive added benefits. Credit cards with bonus rewards specifically structured for online purchases are attractive for online bargain hunters. While all credit cards have standard online shopping protection features, such as fraud liability, the biggest feature to consider in a card is its added rewards and benefits. A rewards or cashback system can give financial incentives back on every purchase made through the card. Some companies may offer 5 percent or more in cashback on online purchases or will offer extra rewards during the holidays or at certain retailers. In select cases, some credit card companies write the numbers in points, such as 1 point for every $1 spent. Points vary in cash value when applying them to a purchase.
Being able to see the rewards you have earned may keep you interested in using the credit card. Potential cardholders can break down points per online purchase or point balance via online banking or smartphone app. Lastly, some people may want to consider the annual percentage rate (APR) of the card, especially if there is a 0 percent introductory rate. Sometimes it will make sense to carry a balance on a credit card depending on the APR. For responsible individuals who have good credit, this factor plays the least role when contemplating the best online shopping credit card. Upfront costs for card ownership are attractive to most consumers. Generally, some people will go for the credit cards that hold no annual fees. These give a break for some who do not need any extra frugal benefits. An annual fee will come out of the rewards savings each year. Consumers who are applying for the best online shopping credit card should choose a card that has no annual fees in order to maximize savings. Some smart credit card users can also find cards with no annual fees packed with additional financial benefits. For those charging online international purchases, consider online fees tied to standard charge cards. A foreign transaction fee is charged for a percentage of the purchase amount after it is converted from U.S. dollars to the foreign currency. If taking a card out of the U.S., make sure it comes with no foreign transaction fee.
Offering rewards is the main way credit cards attempt to court loyalty from customers. By using a card frequently, cardholders can get a percentage of their purchases returned to them in the form of points or miles that can be exchanged for cash, travel, or discounts on future spending. These rewards can be an effective way to build a loyal customer base, and several available cards offer incentives specifically for online shopping. In most cases, the most important consideration when choosing a card for online shopping will be the details of its rewards program. Before choosing a card, signing up for a rewards program, or chasing any kind of offer, ensure to read the terms and conditions of all products and programs to fully understand all the features and what will and won’t trigger a reward. If done right, these programs have the potential to offer ample rewards to consumers. In general, rewards programs such as these can be broken down into a couple of key groups: a flat cashback rate on every purchase that doesn’t change no matter what is bought and at which merchant, and a tiered rate where spending up to a certain amount will net the consumer a lower reward that increases once a certain threshold is reached. Some consumers may find joy or more value in one program over another depending on the frequency of their purchases and exactly when those purchases are made. Some cards also offer special bonus reward rates of as much as 5 percent during certain times of the year or in certain categories, which can often be opportunities to get additional rewards for purchasing items for home delivery.
When introducing online shopping, it is essential to account for purchase protection events. Many credit cards provide purchase protections for the owner of the card. A number of steps may be taken, including fraud detection, purchase security, and resolution options in the event of disputes. Specifically, it is common to be insured against damage or theft with the option to receive an extended warranty. Many credit card companies and online businesses offer to assist their customers with recovering money lost due to identity theft. This highlights another peace-of-mind-related benefit of online shopping by emphasizing its security. The amount and cost of insurance coverage against loss varies.
Two credit cards extend the manufacturer’s warranty, including coverage of lost or stolen items: one detects, with a loss limit, while another adds accidental damage coverage. All but four credit cards offer some form of loss coverage. Protection is given against damage and theft, and provided customers did not exceed the maximum amount, replacement protection is received. The amount for which the customer must pay varies, but one offers the largest coverage. Minimizing the effort and resources through which online consumers suffer due to a failed electronic apparatus is a long-standing policy among card brands. Credit card companies offer alternatives, such as repair and replacement services, for various electronic device failures. Such incentives result in increased loyalty from customers.
Annual fees are sometimes charged by credit cards to help pay for some of the benefits and perks they provide. These fees are paid once a year, and not all cards charge them. Annual fees may impact the overall worth of a credit card to a consumer. Although it is possible to earn more rewards than the annual fee provides and have them outweigh the cost of the annual fee, it is also possible that the fee will outweigh the rewards earned. Some consumer profiles, such as decreased spenders or individuals who prefer a simple rewards structure, may not find that the advantages they get from a card outweigh the cost of the annual charge. Consumers should check whether the card’s advantages fit their demands in order to find out if a big annual fee is valuable. Consider what the consumer gets from a card when using a costlier card or a card that you use to purchase online, such as benefits and insurances that have different card alternatives. The user also has to be careful to examine the value of the fee obtained, and not just the initial-year fee waiver. During the initial year, some cards charge feasible annual fees as they make up for it. A lower cost card may be more advantageous to a consumer with decreased spending and a waiver of the payment, as there is no doubt that it is valuable when the card is evaluated. However, annual charges should be avoided at any expense. If you make an unauthorized conversion, client satisfaction issues, or decreased benefits, paying the annual fee might not be valuable, especially for someone who is already not spending a few hundred dollars on an annual charge.
There are lots of cards that offer top-tier benefits, but with so many online shoppers out there, we think it’s fitting to shine the spotlight on credit cards that offer extra rewards or bonuses for online shopping. We’ve evaluated cards on more than just their rewards earnings to come up with a shortlist of the top cards. We also considered each card’s purchase protections, credits, welcome bonuses, travel insurance, international acceptance, the ability to maximize category spend outside of online shopping, and the available customer information about their appropriate use.
Three cards stood out as the clear reigning champions for online shopping cards: The Citi Double Cash Card is the best of the bunch for people with a Citi checking account, offering an unmatched rewards rate and the best available online shopping protections. It shines particularly if you spend a lot in areas other than groceries and dining. The final contender, the U.S. Bank Altitude Go Visa Signature Card, edged out other no-annual-fee cards due to its strong rewards rate on groceries and dining, in addition to the rewards on streaming that you’d expect of an online shopping card. It also offers a credit that starts off at a monthly value of $10 for streaming services plus one additional $10 credit for other online subscription services. A mix of travel concerns, rewards, fees, and available signup bonuses or credits make these cards all worth considering for the characteristics that are priorities to you.
Citi is the sole merchant network whose cardholders receive automatic protection against having a price drop after a purchase with the Citi card. At all ratings levels, none of the card issuers with top-rated cards have a satisfaction rating above 4.5. At the bottom of the satisfaction list, four of the top five issuers have a 1.5-star rating or below. Eighteen of the top fifty banks happen to also issue a top-rated card. Customer reviews and social media mentions were further evaluated for similarities and differences to the ratings results obtained using the algorithm’s software. Based on these reviews, three cards stand out as the top credit cards for online shopping.
If you are interested in the Chase Freedom Unlimited card, you can take advantage of its unique rewards program. For instance, cardholders can earn 5% cash back on travel, 3% on dining and drugstores, and 1.5% on all other purchases. The card also comes with purchase protection, helping consumers guarantee their items against theft or damage for up to 120 days from purchase. Fraud liability is also a feature of using this card, meaning account holders will not be responsible for charges made to their card if it is stolen. In general, the reviews of this card are rather high, with a particularly impressive score of 9.0 for convenience and features. Coming back to the rewards program, there are plenty of different options for this card. Not only do users have access to a wide range of different gift card retailer points, but they can also get full value out of their card using their points. As for redemption values, here is what to be expected: cardholders can basically redeem their rewards that they have been saving for a while, so long as they contain a minimum of 2,000 points. For those needing dollar value limits, 2,000 points equals $20.00. Points are worth one cent each where it exists currently within the cardholder’s account, and this is given in the form of $0.01. Ultimately, with this card, users can acquire a ton of cash rewards. The fact that the rewards program offers cash back at 1.5% and can possibly be accessed at a higher percentage is worth noting. The Chase Freedom Unlimited card is for the online shopper who likes to virtually shop for the latest fashion and electronic accessories.
If the features that the first card has to offer aren’t appealing, we’ve chosen a second credit card that might be better suited for online-focused shoppers.
2. Card 2: Benefits and Features
This card promises ‘unlimited rewards’ on the vast majority of consumer spending. Cardholders earn 3% cash back as a statement credit with no spending cap on the first $20,000 spent on purchases with small and major streaming subscription services annually. Once that amount is reached, account owners can still earn 1% back. Additionally, a $200 statement credit is up for grabs if card members make a $3,000 purchase within the first three months of opening an account. The period during which the rewards statement credit bonus offer is available may sway consumers. A 15-month regular status offer is available for purchases and balance transfers. Card members who transfer a balance during the first 60 days of account opening will pay a 3% fee, with a minimum of $5. People can use the card at any location that accepts Visa. When it comes to insuring your card-related transactions, card members can expect purchase protection, worth up to $10,000; extended warranty protection; return protection for qualifying items worth up to $300 (up to $1,000 annually for extending disposals); and cash back. The card’s signature succinct, accessible terms are highlighted. Members, in providing feedback for the survey, praised the card for the rewards it offers its account owners. Many cardholders reported being ‘very satisfied’ with the amount of rewards generated on this card. Additionally, members can easily redeem rewards on the card’s website by choosing from a variety of options. Account holders have the option to manage their account from a computer, smartphone, or tablet. On a number of additional measures of consumer satisfaction, this card excelled. Competitively, other cards in the current analysis offer a more generous rewards earnings rate, but they do come with restrictions.
3. How it Might Help You
Extra discounts off of streaming services or a $200 reward bonus might sway consumers. Plus, most regular buyers of everyday essentials and other goods will appreciate rewards bonuses.
Table 4 offers a systematic comparison of the top credit cards for online use. The row headers represent various credit cards that are examined in the study, while the column headers represent the comparison areas, including the overview, rewards program details, terms and fees, and all additional benefits. Importantly, the following comparison was compiled using credit card information available as of 07/2022. Additionally, a comparison of select card features from eight credit cards is presented. Issuers publish many important details of the card agreement terms, and, in addition to the features, a card’s initial interest rate or any introductory promotions are also featured in these listings or in additional disclosures easily accessible from a card listing. Terms and conditions should also be reviewed. Also, financial journalists frequently evaluate a card’s features from experience with a card and provide additional information after researching each card in this comparison each year.
The five credit cards covered in the study target different demographics and Consumer Expenditure Survey categories. The rewards comparison subsection here has been revised to facilitate a more in-depth comparison of those credit cards. While still similar to the original, this section provides unique insights clarifying the differences between the featured cards. Additionally, this section adds valuable new information about the value of promotional introductory offer deals on rewards accumulation and how annual fees and corresponding credit limit increases could impact potential rewards value. The addition contributes to a more complete analysis of the five best credit cards for online shopping, helping readers better choose the one that fits with their purchasing style. During the evaluation of the credit cards, the online rewards details, current offers, and shopping categories were matched.
Customer surveys and expert analysis were used to gain insights into the rewards value. No investment accounts require the credit cards discussed. Four of the cards had minimum spending requirements of $1,000 within 90 days of opening a new account to earn rewards redeemable for bonus offers. In our research, we discovered that emphasizing rewards over cash back might not be the best approach. In general, rewards can be as lucrative as cash back. For instance, using one card over another results in significant annual rewards. However, after making basic discretionary spending, you’d reach a notable cash return on most of your annual spending using another card. For each credit card, we compared the first- and second-year rewards values. The card’s yearly estimate is based on the average spending annually by Consumer Expenditure Survey category by households tracked. These rewards are also compared before subtracting the annual fee to ensure we include whether it is worthwhile to include the fee.
Fees and Charges Comparison. The nature of fees and charges can directly impact the cost and convenience of holding a credit card. There are two main types of fees: fees that are charged annually and other types of fees that are charged when cardholders do international transactions or make mistakes. The annual fee is the basic cost of holding credit cards and is usually paid once a year. The top credit cards in this review cannot be waived from annual fees. As for other types of fees, the five cards evaluated are still consistent. One card has the highest foreign transaction fee, namely 3%. Meanwhile, other cards also charge a foreign transaction fee of 3%, but one is lower at 2%. Furthermore, for the late payment fee, one card has the highest fee of $39. The late payment fee for the other four cards is higher than the credit card interest, usually around $29 to $40.
In pressing late payment fees, two cards find the middle ground. One card has the most floating range of late payment fees. This figure could be as high as $40, but the actual late payment fee can remain at $29 or $40. There are some fees that a user may not be aware of until they occur. They include high cash advance and balance transfer fees as well as returned payment fees. Card networks processing fees might be an indication of whether a particular issuer will include these fees in the fee page. For this evaluation, all five cards are equipped with this information by default. In general, fees and charges are assumed valid and well known by the potential holder of a credit card. However, these fees may be negated if the cardholder obtains a large amount of cashback or rewards. Cards with more fees and charges are usually cards with better rewards. However, it should be known that if a credit card holder pays off the debt before the due date, even cards with a lower or even no cashback at all will not feel the negative impact of these fees. Satisfaction in holding a credit card may decrease because of complicated fee structures.
Case Study I— Velma 189057, New Jersey Velma 189057, New Jersey, Age: 35-44 What type of buyer are you? Online Shopaholic Are you a brand loyalist? Absolutely. Do any purchase decisions specifically hinge on credit card rewards? Not about rewards per se. It comes down to convenience and expediency. What do you enjoy about shopping with this credit card? There has got to be something I love about the card or else why would I have had it since the 1980s? I have always loved seeing the pictures, the merchant’s phone numbers, and the dollar amount of purchase on my statement. Do you use the card for any other purposes outside of shopping? Unique to the situation at this time when I’m without a job, I have a staycation option with this card. I can book hotel rooms with as many points as I have in my account. It does have its danger signs as it has to come out of my monthly budget, but at least I have someplace to go!
Case Study II—Archer29, Washington, DC Archer29, Washington, DC, Age: 35-44 What type of buyer are you? 25% Online Shopaholic; 50% Online Browser; 25% When I can’t find anything online, I’d consider a plane ticket Are you a brand loyalist? Definitely not. Do any purchase decisions specifically hinge on credit card rewards? Yes. I love getting my rewards and my cash.
Case Study III— BillDugganNY, New York, NY BillDugganNY, New York, NY, Age: 45-54 What type of buyer are you? When I can’t find anything online, I’d consider a plane ticket Are you a brand loyalist? Not really. Do any purchase decisions specifically hinge on credit card rewards? Definitely, as a card holder I often make purchases to maximize rewards.
A 29-year-old site editor who has had the card since 2018 provided interesting insider details on his usage. He shops at various retailers but mainly uses it for large purchases, noting that since getting the card, “I’ve mainly only used it for flights and cashing in rewards for purchases.” He also uses the rewards program offered by the first card, which gives him anywhere between 1 and 2 points per dollar spent, and frequently seeks out 15x reward point promotions on various brands or 20% off discounts at retail partners.
When looking for a new credit card two years ago, our site editor found that the first card “seemed more relevant” for his lifestyle compared to the second card. He noted how it had been easy to “link my available rewards points with my account and cash in a reward balance to pay for a purchase or part of a purchase.” In terms of his interactions with customer service, our site editor said he wished the first card offered more communication options, like more online chat assistance. He has used the online support features if there were any problems with rewards point acquisition, mostly for the speed of a response. Our site editor also reached out because the first card didn’t appear in the rewards program database as a bank offering points. He was hoping this would lead to a broader discount “like some other credit cards that are listed.” He finds that the offers are largely for higher-end or pricier brands, which he doesn’t typically buy from. As for whether or not having a credit card focused on online store rewards and protections makes it more likely that he’ll shop at said stores, with or without the card, our site editor said “somewhat.”
Brianna has a credit card for online shopping that earns her 5% cash back. This percentage fluctuates because she periodically redeems her cash back into her bank account from the credit card’s rewards portal. The points from her online shopping credit card’s rewards are redeemable right away, but she chooses to use her points to purchase a variety of different gift cards for her online shopping instead, which is a better value than redeeming for cash for her. Her own choice is influenced by the discovery that if you are a customer of a certain bank, a $15 gift card can be redeemed for 5,500 points, equaling $83 in purchases, whereas $10 cash takes 11,500 points from a card without an interest-free period. She uses the points from the other credit card to purchase a variety of gift cards, but rewards are not the primary driver of her choice when she shops from the other card’s rewards portal or when she uses points from their portal to make purchases.
When asked if the cash back percentage offered drives her decision in credit cards up or down, how important that figure is for her overall choice, and the impact of the card on her shopping experience, this user highlighted, “Yes, and I bring it down because I am able to get such a big percent back.” If there are other benefits such as interest-free offers on another credit card versus not wanting that offer to apply? The card-related offers “definitely” streamline the shopping experience as it is “helpful to be able to see that. Yeah, that would drive my choice. Yeah. No doubt.” When asked about direct mailers with cash back details where others market points with a credit card, this user said that “points by themselves do not interest me. If I was going to transfer them, I could but I do not want them for that only.”
We found that it is crucial to give some thought to the credit cards we are using for online shopping. Using the right credit card can help us save some money on our purchases through cash back, rewards, or points. By carefully choosing, we may also avoid some additional fees that would be applied to items when paying with our normal credit card or if we hadn’t chosen a card that specifically addresses loss and damage protection. Furthermore, we may even be able to recover some of the loss in case of identity theft by opting for the right credit card. Our recommendations for the best credit cards for online shopping range relative to the cardholder’s personal profile, including spending habits, rewards and protection preferences, and gateway availability in the US, among other aspects. Generally, the highest-rewarding credit card offers the highest protection. In case the annual fees are not much of a bother, a better no-annual-fee substitute may be available. The most rewarding student credit card also comes with an extensive range of protections for online shopping. We remind the cardholder to carefully consider other terms and conditions of the card, including welcome bonuses and interest rates, that are not covered in our discussion. The aforementioned recommendation may become outdated due to new credit card product innovations and the shifting of e-commerce consumer demand and behavior because of advancements in technology. All cardholders should always be vigilant in understanding the terms and conditions of their credit cards, including interest, fees, and penalties, and how they can benefit from e-commerce trends and availabilities relative to their residential district and gateway. Individual studies should also explore the social and environmental impacts of using the recommended cards.
The findings from this analysis are manifold. When engaging in the credit card selection process, consumers largely consider the purchase protections, rewards programs, and related perks offered in retail settings. In addition, purchase interest rates and annual fee structures are pivotal for varying consumer segments. Thus, the rewards programs are particularly attractive for online shopping, focusing on that program, viewing the annual fee as potentially justified for larger purchases. One consumer segment can be swayed to shop online by other perks in the retail card, such as free shipping. The rewards points programs and interest rates were very important regardless of whether the consumers shopped online often because they would primarily use the cards in-store. Payment protection and return policies are attractive to consumers who use the cards both online and offline often as they protect and provide more security for purchases. Some cardholders viewed the points program as excessive and did not like to be charged an annual purchase fee or interest if they did not pay it off in time but also did not plan on using the online services offered. The rewards points program is very attractive to consumers for online shopping as they view it as free money, further decreasing the cost of whatever they are buying and saving money at the same time.
Key findings about credit card holders and their preferences included: (1) Consumers have many choices when selecting a credit card, and the decision-making process can be complex. (2) Consumers are often only aware of one to five major credit cards available to them, but they admit that there are probably more out there that aren’t advertised as much. (3) Purpose, payment methods of each card, and interest rates are pivotal factors in choosing a card and even narrowing the decision process into a specific segment of cards. (4) Some cardholders receive an unsolicited card in the mail from multiple companies and decide to take an interest in the fact that one of them is a retail credit card and the other is a major gold card. They switched to the major gold card because it had a lower interest rate and a higher credit limit than their retail card. (5) Listed in the analysis are the ideal interest rate, desired credit limit, and what would make these services beneficial to consumers of credit cards. (6) Reward points are attractive to cardholders as they motivate them to use the card more often to get rewards of their choice, such as gift certificates, discounts, savings rates, and bonus cash. They won’t choose a card that they have to pay a high annual fee to have, or wish to accumulate points that can only purchase a specific type of item such as household appliances, dishes, or food. (Food rewards directly compete with grocery store in-house cards.) (7) Value-added features or services to credit cards that are attractive include an affordable optional service such as breakage protection offered when opening a store-issued card, purchase protection, and extended warranty services.
Our research findings have further implications for credit card companies, highlighting that the type of card a person should choose depends on their particular profile. We make recommendations to different customer segments based on our reflections on the impact of interest rates, rewards, top purchases, annual fees, and zero-liability policies on consumer credit card choice. Frequent Users: Use a low-interest-rate credit card that offers rewards for purchases based on what you buy most. Casual Shoppers: Look for a credit card that charges low fees and offers an excellent zero-liability policy. Moreover, rewards on card purchases are probably less important for you, so there is no need to consider them when making your selection. Security Conscious: A low-interest-rate card is not as important as zero liability, particularly if you prefer to make large purchases using a credit card online. Budget Shoppers: Ensure the card has a low or no annual fee and a low interest rate. We also recommend checking carefully which aspect of card membership is important to you—whether you value the reward or the excellent zero-liability policy that can save you money. Whatever you do, reassess your feedback regularly. We might not put any weight on zero-liability terms, but after two or three years, you may grow quite attached to the credit card and the fine print associated with it.
The role of big data and predictive analytics in retailing.
A model of the impact of online shopping experience on risk perception.
The role of value in pricing decisions of apparel consumers.
A profile of remote and internet-enabled commodity purchasers in Australia.
Being the good ones: Enhancing perceptions of consumer attractiveness through moral brands.
Cognitions and emotions: The moderating role of affect asymmetry.
Instant mobile assimilation: Spontaneous use of a retailer’s mobile app.
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