Exploring Distinct Methods of Paying Through Credit Cards

Credit cards play a crucial role in our daily life, changing the manner we perform transactions and manage our daily finances. These cards provide a secure and convenient means of payment, permitting users to conduct buys and access credit easily. In the present day’s quick-moving scenario, credit cards offer multiple benefits and are widely utilised for distinct purposes, making them a necessary financial instrument for businesses and individuals alike.

One of the basic benefits of credit cards is the provision of flexibility. With credit cards, you can buy at online marketplaces, brick, and mortar stores and while travelling domestically or internationally. They offer a convenient means to make payments for daily expenditures such as dining out, utility bills and groceries. Moreover, credit cards allow you to conduct major purchases like hotel accommodation, flight booking, etc, without the need for carrying huge cash.

The next considerable advantages of using credit cards are the potential to get credit as demanded. On occasions of exigencies or unforeseen expenditures, credit cards serve as a safety net, offering instant funds that can be paid back over time. Such credit cards often provide a reward program, wherein you can earn cash back, points or air miles for every buy you perform, increasing the utility and value of such cards.

Credit cards can even be used to form and ameliorate your score. Constantly utilising your credit card in a responsible manner, performing timely repayments, and checking your CUR (credit utilisation ratio) that it is within 30 per cent can positively impact your score. Furthermore, having a good credit score of 750 and above, make you eligible to apply for loans, and financial instruments like credit cards such as you may avail an AU lit credit card, a variant of an AU bank credit card, or an IndusInd legend credit card, a variant of IndusInd credit card or ICICI Amazon credit card, a variant of ICICI credit card.

Different methods of repaying via credit cards

Payment through the online mode

With the increase in e-commerce, online payments have considerably become popular. Note that credit cards are widely accepted tools by online merchants, permitting you to perform buys with only a few clicks. In the course of the checkout procedure, you input credit card information involving the credit card details, CVV code and expiration date to finish the transaction. For instance, in the case, you are purchasing clothes from a retailer online and select to pay using the AU credit card, you can securely input the credit card details on the site for making the payment through the OTP that you will receive on your registered phone number.

Contactless payments

Now, many credit cards come with NFC or Near Field Communication technology, allowing you to perform secure and instant payments by just tapping your credit card just on a contactless payment terminal. This means is not just convenient but even lowers credit card fraud. For example, when you are grabbing an instant coffee at a restaurant and paying through a tap on the payment terminal, then this means you are using a contactless payment mode.

Also Check: AU LIT Credit Card

Point-of-sale transactions

It is a common means of utilising a credit card, wherein you can physically present your credit card at the POS (point of sale). You just need to simply swipe and insert your credit card into the reader, input the PIN and sign and the transaction will be processed. For example, when you buy something from a grocery shop and pay using a credit card, then you are indulging in a POS transaction.

Mobile wallets

Mobile apps like Apple Pay, Google Pay, PhonePe, etc., permit you to store your card detail digitally on your phone. Then, you can use your mobile to perform payments by holding the same near a QR code or contactless payment terminal. Additional security layers and convenience are offered by mobile wallets because your details on credit cards are encrypted. For instance, upon buying some goods from a departmental store if you choose to make payment via Paytm using your credit card details, then this means you are using a mobile wallet for the transaction.

EMI (or Equated Monthly Instalments)

Often credit cards offer the choice for converting your high-end buys into simple monthly instalments. This permits you to disseminate the purchase cost over a time period, making it manageable and affordable. For example, if you are purchasing a phone for Rs 50,000, you can select to make payment in six instalments of Rs 8,333 per month. This means can specifically be useful when performing costly buys without putting much strain on your budget.

Balance transfer

In the case you have accumulated a high-interest debt on a credit card, then you can simply transfer the outstanding credit card balance with a lower rate of interest. This can assist you to save the interest constituent and consolidate your debt in a single account. This makes it simpler for you to manage. For instance, if you hold an outstanding due on a distinct bank’s card, you can transfer the same to another card, offering a lower rate of interest for the transfer of balance.

Cash advances

In times of urgent need, credit cards allow you to withdraw cash from ATMs or over the counter at banks. This feature is known as a cash advance. However, it’s important to note that cash advances often come with higher interest rates and additional fees, so it’s advisable to use them sparingly and only in emergencies.

Bill payments

Credit cards even can be utilised to pay distinct bills like insurance premiums, utility bills or also monthly subscriptions. Many card issuers offer mobile apps or online platforms where you conveniently can set up automatic payments of bills. This makes sure that your dues are paid timely and assist you to avoid late repayment fees or penalties.

International transactions

Credit cards are widely accepted globally, making them an ideal choice for making transactions while travelling abroad. Whether you’re booking flights, paying for accommodations, or shopping in international markets, credit cards offer a secure and convenient payment method. Additionally, some credit cards offer benefits such as no foreign transaction fees or travel insurance coverage, making them valuable companions for frequent travellers.

Virtual credit card

Virtual cards are basically temporary card numbers you can use for performing online transactions. Such cards offer an added security layer by generating a unique number for every transaction, which lowers the fraud risk as well as unauthorised transactions. Virtual cards are particularly useful when performing buys from unfamiliar online merchants or for the purpose of added security in the course of online shopping.


Credit cards today have transformed the way we perform payments as well as manage finances, providing a wide range of flexibility and benefits. Right from contactless payments, point-of-sale transactions, and mobile wallets to online payments, there are distinct means to perform transactions via credit cards. Moreover, features such as balance transfer, EMI and bill payments offer financial flexibility and high convenience.

Benjamin Numbers

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