Bloggers and Freelancers often have to make payments online for goods and services like web hosting and advertisements. Debit cards are not accepted everywhere and owning a credit card is a must in some scenarios. Moreover, with the upcoming changes in Paypal terms, one can’t keep received funds in Paypal account for long.
If you have always believed that availing a credit card required stringent approvals at the bank’s end and lengthy documentation procedures then you are only half right. With the arrival of new Easy Credit cards and virtual credit cards the process is no more as difficult as it used to be.
Difference between Easy and Virtual Credit Cards:
Virtual credit cards are the safest and best option for most needs. It is basically an online service linked to your Netbanking account. Whenever you need to pay online, just login to the online portal and create a credit card for the required denomination. (usually limit is between Rs. 100-50,000 for most Indian banks)
The virtual card is safe because it can be used only once and expires automatically after 24 hours if not used. The card has a prepaid limit so your merchant cannot overcharge you. Also, you can use it at places you don’t quite trust too, without any worries as the merchant can’t reuse your card credentials after first usage.
Easy or Instant Credit card is a service from some banks where you get a real physical card from the bank after you pay and maintain a fixed deposit with them as security money. Normally, the minimum amount of fixed deposit is INR 20,000 and up to 80% of the amount can be utilized for credit.
Which Card is best for me?
The need varies from person to person. If your needs are mostly like paying bills online, buying webspace and booking tickets virtual credit card is enough for you. There are no fees attached and unused money is deposited back into your account. The only limitation of virtual cards is that you cannot use it in places other than online merchants. For example, you cannot use it over the phone to book tickets or pay bills. Similarly, if you use it for buying music or Apps from iTunes store you will have to update card info everytime you purchase.
If you need to use the card over the phone or physically at merchant establishments you must go for an Instant Credit Card. Same applies for those who buy a lot of content from the iTunes App store or PlayStation Network Store.
Which Indian banks offer these services?
What are the first time charges?
For virtual credit card, no extra charges at all. You just need to maintain a Savings account with the bank in case you don’t have one already. The minimum balance for the account is usually INR 10K.
For easy credit card, AXIS bank requires you to have a minimum Fixed Deposit of INR 25K and a savings account with minimum balance of INR 5K. So, that’s INR 30K in total at the time of account opening if you don’t have an account already with them.
Similarly ICICI bank requires a minimum FD of INR 20K and saving account of INR 10K. In total first time deposit of INR 30K. These deposits are fully refundable once you close your account. You can increase your credit limit upto 3 lakhs by increasing this deposit at the time of opening or later.
So decide your needs and then apply for the card you require. If you have more credit card related questions feel free to ask us via comments. In case you are already using one of the above do share your reviews with our readers.
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