5 Things You Should Know About Credit Cards

Credit Cards have substantial advantages. You can avoid carrying around huge wads of cash while shopping and they can be used for making online purchases. The rewards points are an added benefit too. Credit Cards help you to improve your credit scores. Keep things in mind when using your Credit Card.

1. I tried to make an online payment but the system shows that my card as invalid. Why did that happen?

There could be a delay in the payment until you update your Credit Card information in the seller’s account.

You should check the following when you enter the Credit Card details:

• Ensure that you have entered the Credit Card number accurately
• The billing address you enter should be the same as the one on the card statement
• Enter the correct postal code without any spaces
• The card should not have expired
• The name you enter on the website while paying should be the one on the Credit Card

2. How can I update information about my Credit Card on the seller’s website?

Adding a fresh Credit Card or updating an existing one in the seller account is easy. It is crucial because any mismatch of the information provided can result in the bank declining your payment.

• Go to Settings and click on the Account Info option
• Select Charge method from Payment Information
• Click on the Replace Charge Option. Enter the correct information as it appears on your credit card statement.

3. I have entered my credit card information on the Amazon website, what happens next?

Once you enter a new card or update the data of an existing credit card, Amazon requests your bank to authorise a small payment. They do it to verify your identity and validate your credit card.

If the information is correct, the bank validates the charge. In case the bank is not in a position to authorise the charge, it is the responsibility of Amazon to contact you for clarification. In case of expiry of your card, you have to enter the information about your new card. You’ll not be able to access the seller account otherwise.

4. Why do banks sometimes decline online payments?

There are many reasons for the rejection of payments.

• You might have used an expired card
• The amount might have been over the credit limit on your card.
• You could have entered the incorrect CVV number or other details
• Your bank might have blocked your card for some reason
• The internet connection could have snapped
• The OTP might have been received late(in case of second verification)
• If Banks suspect suspicious spending trends, this is for your safety

5. What is a chargeback?

In case of a wrong debit, the customer can dispute the charge on his account. The bank investigates the matter and returns the payment to the card account after due verification. It can happen due to various reasons.

• The customer might have lost or misplaced the card. Someone could have used the card fraudulently. The cardholder has the responsibility to inform the bank about the loss of the card as soon as the customer realises the same. However, sometimes the holder might not be aware of the loss of the card. Under such circumstances, banks allow chargeback of all debts done up to 48 before the reporting of the damage. Such a facility is available on almost all cards today. You can check up whether the facility is available when you Apply for a Credit Card.
• A cardholder can choose to return an item that they had purchased. If it conforms to the returns policies of the merchant, it is the responsibility of the merchant to initiate the chargeback to the account of the cardholder. It is the purest form of chargeback.
• A dispute can arise because of an erroneous debit. It can also happen due to technical problems like loss of connectivity. Under such circumstances, the merchant has to initiate the chargeback.

Chargebacks are common occurrences. Frauds can complicate matters. Otherwise, chargebacks usually take place within a couple of days of raising the dispute.