Cashless payments through credit and debit cards, UPI Payments, NEFT, RTGS and mobile wallets are gaining favour because of the immense benefits offered by them. They not only reduce the risk associated with dealing in cash but are also highly convenient to use and time saving. Risks such as theft while carrying cash or withdrawing it from the bank or while travelling are not present when you handle cashless financial tools like a credit card and a debit card.
Transactions via credit and debit cards, the most popular cashless options, are superfast thereby saving a lot of time for the parties involved. The top benefits of choosing cashless payments via an online credit card or a debit card are:
No Risk of Theft or Misuse of Cash
Cashless payment systems like credit and debit cards allow the holders of these cards to carry out any transaction without worrying about the risk of losing or misplacing that cash. These cards just need to be swiped at the concerned merchant’s shop for the payment of the due amount. These cards can also be used for online transactions from anywhere in the world.
Easy Access to Credit at Low Cost
Cashless transactions via a credit card allow users to have easy access to credit at an extremely low cost. The cost of using a credit card is only the annual charges if you pay the due amount on time and some additional interest charges if you are unable to pay the due amount on time. A credit card allows the holder a credit limit of a certain pre-approved amount which means that the holder can make payments or shop until the total reaches his approved credit amount.
The bank issues a credit card statement providing details of the transactions made by you during that period and the amount due. This borrowed or due amount is to be repaid by a specific date to avoid any kind of interest charges. The credit card interest varies from one issuer to another.
Easy to make international payments
A trip to a foreign country requires the traveller to buy foreign currency for use in that country. However, the use of cashless solutions like credit cards and debit cards has done away with this requirement. International cards can be used anywhere across the globe to make cashless payments.
Cashless payment modes like debit and credit cards allow users to shop anywhere without worrying about arranging the necessary cash. Online shopping or other transactions like booking tickets or transferring money becomes easier with the use of credit and debit cards.
Better Financial Management
Cashless transactions carried out via any medium are easy to track. This allows you to have a full record of all your transactions and check for any discrepancies, if any, immediately. In contrast, cash transactions carry the risk of miscalculation and may be difficult to track sometimes.
Cashless transactions are thus much more convenient and less risky than dealing in cash. Credit cards offer users a great opportunity to go cashless without compromising on their ability to shop or pay bills or make any other transactions.