Using your credit card while shopping has many benefits, including rewards programs, $0 liability guarantees, and free two-day shipping. These rewards can add up to more than $100 in annual savings. Credit card companies have been ramping up their reward programs, which can range from cash back to travel points. To get the most from these programs, you should read the card’s policies carefully and opt into bonus reward options. Here are three of the most common rewards:
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Rewards programs
Using your credit card while shopping can earn you American express gold benefits– such as cash back or other perks. However, many credit cards have different rules when it comes to redeeming your points. Usually, you must pay off your balance in full every time to be eligible for your reward, and you should avoid carrying a balance. Depending on your credit card issuer, you might also be required to provide some personal information in order to receive your rewards.
One of the benefits of using a rewards program is that you won’t be charged interest on the purchases you make. Instead, you’ll collect points that you can use to redeem for free items. Some retailers even allow you to earn points by making purchases and then offering you rewards once you reach certain thresholds. For example, a 15-point reward from a Peet’s coffee purchase gets you a free drink. You can earn points by buying coffee, food, and other products. Bonus points are often offered on whole beans and other items, such as coffee.
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0% introductory APRs
If you’re planning to use your credit card while shopping, make sure to look for 0% introductory APRs. These offers are meant for specific situations. You should be aware that some 0% APR credit cards have annual fees. You can compare these to the interest rate to determine which one is better for you. While the introductory APR offer is appealing, you should always make payments on time.
If you want to pay off your purchases within the introductory APR, make sure that you do not carry a balance. Some cards allow you to make purchases with no interest if you can pay them off within the introductory period. Some cards charge a balance transfer fee of two to five percent of the amount transferred. Regardless of the type of balance transfer fee, you should make sure that you pay off all purchases at the end of the introductory period.
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$0 liability guarantees
Zero-liability guarantees depend on the consumer reporting fraudulent charges in a timely manner. Many credit card issuers have their own guidelines for what constitutes suspicious activity, and they flag suspicious transactions by sending a secure message or text. They may also call the primary cardholder to verify a transaction. If the consumer reports fraudulent charges within 60 days, they can benefit from the $0 liability guarantee.
Some debit cards may offer the same zero-liability protection. But these benefits vary depending on the card type and how you discover the fraud. In most cases, you can only claim a liability limit of $50 within two days of the fraud. If you wait for longer, you may be held responsible for the full amount of the purchase. Some credit card companies may also have a zero-liability policy if you do not have a good credit history or have not made timely payments.
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Free two-day shipping
Using your credit card while shopping means you’ll get free two-day shipping when you make a purchase with dozens of merchants. You can choose to pay a fee, however, to receive this perk. You can also get free returns and return shipping when you sign up for ShopRunner, a program that partners with retailers to offer free two-day shipping to members.
Many of the perks of using credit cards while shopping can be paired with free shipping. Many retail chains and specialty stores offer this option, and you can usually find a card with a good interest rate. Then, you can take advantage of free shipping for two-day shipping on a variety of items. This is a great way to save money on shipping while also speeding up your online shopping experience.
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Avoiding processing fees
There are some ways to avoid paying processing fees when shopping with a credit card. Some issuers will waive the fee for small businesses that use their credit cards in-store. Other methods include setting up a credit card processing terminal and accepting payments in person. Ultimately, avoiding processing fees when shopping with a credit card is about knowing how to use your card wisely. Below are several tips for avoiding these fees:
Try to avoid paying foreign transaction fees, which usually are three to 5% of the total amount. For instance, if you plan to pay for a plane ticket with your credit card, you may want to avoid paying this fee at all costs. Many merchants reward their customers with lower interchange rates if they use their card to pay for an airline ticket, so be sure to check with the merchant to see if they charge any fees for using a credit card to purchase something.