Use of Credit Card for Online Shopping

Credit card payment has become an important part of doing business on the web. Online purchases are often made through a Website linked to a bank's server where the transactions are processed. The company does not know what type of credit card is being used because it is masked by a number system (called an "authorization"). The authorization process involves contacting the bank and getting approval for the transaction (either immediately or within a few hours).

Once the authorization is made, the online business usually sends a confirmation to the customer. This has become a new marketing tool. Confirmation pages not only inform the customer that they have ordered something and what it is, but they also ask for personal information such as name and address. The information is used for marketing additional products and services to that customer in the future.

Steps for Online Payments Using Credit Card

  1. Key your shipping address, subject, description, and quantity on the order page.
  2. Choose your mode of payment as a credit card. Then the system will recognize your card, and you can immediately start the online checkout.
  3. Key in the correct information on your credit card
  4. Confirm your order details and click on the payment page.
  5. Fill up the credit card information and confirm it; your order will be shipped immediately
  6. You can check your payment details on your credit card account statement.

Credit card payment has become a popular payment method for customers to purchase goods and services on the Internet. In some ways, using a credit card is safer than using cash because it provides the customer with some protection if something goes wrong (e.g., the Web site goes out of business).

Advantages of Using Credit Cards for Online Payments

  1. Credit Card payments are processed quickly. The customer can place an order immediately, and the seller can ship the product or service immediately.
  2. Credit Card payments give the seller a record of what and how much was sold. This provides the seller with valuable marketing information they can use to make better business decisions in the future.
  3. Credit Card payments are convenient for customers because they do not have to carry cash or even have a checkbook in handy. They use their card for purchases, making shopping more enjoyable and less stressful.
  4. Using a credit card for payment is about the same as using paper checks, cheaper than sending money orders to pay for things online.

Disadvantages of Using Credit Cards for Online Payments

  1. Credit Card transactions, like all purchases, are subject to a sales tax that varies from place to place. A credit card transaction may also include a convenience fee or other charge from the credit card company or the bank. These charges can add up quickly and wipe out any savings from using credit cards for payments.
  2. Because a credit card transaction is irreversible, there is no way to cancel the transaction if customers change their minds after placing the order. They are stuck with whatever they purchased and must make arrangements to ship it back.
  3. Credit Card transactions are subject to a billing cycle, which means that the credit card holder may be charged for the product or service before receiving it.
  4. Credit Card transactions may put the seller at risk of identity theft as people try to steal other people's names and information to make online purchases.


A credit card as a method of online payment is easy and fast. It is recommended for companies to use it. Credit card payments are more secure and convenient for both customers and seller. Customers are also advised to be careful when paying using a credit card since they may be a victim of theft or may end up with items they don't need since the payments are irreversible.