What benefits do I have when I pay with my credit card?

A key benefit of a credit card is the ability to dispute a payment. The so-called chargeback scheme. Also called delivery guarantee. 

Other benefits of a credit card are:

• International payments
  You can pay with a credit card almost everywhere in the world. This does not always apply to your bank card, for example. Some restaurants or shops do not accept bank cards when abroad.
• Shop safely online
  Do you buy something online and the order is not delivered, or you have a hassle with the seller? Then you can reverse the payment.
• Pay afterwards
  You will only receive a bill at the end of the month. Postponing your payments will not cost you anything extra. For example, you do not pay interest.
• Handy for holidays
  To rent a car, most car rental companies require a credit card. In some cases, this also applies to booking accommodation. This includes booking a hotel room.
• Insurance and savings systems
  Many credit card companies insure your purchases and allow you to participate in a savings system. You pay nothing extra for this.

#advantages-creditcard

There are also drawbacks to a credit card. Being able to spend money that you don't have in your bank account can make it tempting to make all sorts of purchases that you can't actually afford. This can cause financial problems.

Other disadvantages of a credit card, are:

• Annual fee
  You pay an annual fee for the use of your credit card. This fee is usually higher than the fee of your bank card.
• Withdrawing cash is expensive
  You pay a transaction fee for each debit card transaction. On average, this is 3 to 4 percent of the amount withdrawn with a negative balance. These fees vary for each card and credit card company. Are you withdrawing money outside the EU? In that case, you also pay an exchange rate surcharge.
• High lending rate 
  Do you choose not to pay your outstanding bill at the end of the month, paying in instalments instead? Then you take out a loan. This is subject to a high borrowing rate. This interest rate differs per credit card company.
• Fraudulent
  Credit card fraudsters operate in many different ways. Credit card details can be intercepted via rogue online shops. It also happens that credit cards are copied during a payment. The stolen data is then used to make purchases and plunder accounts. Therefore, always check your monthly statement carefully!

#disadvantages--creditcard

Since the revision of the European Payment Services Directive, PSD2 of February 2019, online shops in the EU are no longer permitted to charge surcharges on paying with a credit card. These fees are different from the fees you pay for withdrawing money/swiping to pay with your credit card and the fees for being able to use your credit card. The annual charges.

#surchage-creditcard-payment

The cost of a credit card varies from around € 15 to over € 100 per year. In most cases, the more expensive the credit card is, the higher the spending limit and the longer your items are insured after purchase.

#cost-of-a-creditcard

If you make a purchase with a credit card, it is usually insured against theft, loss or damage. Purchase insurance is for a specific period of time, such as 90 days, depending on the credit card you have. Check the terms of your credit card's purchase insurance with the credit card company.

#purchase-insurance

There are no additional charges for paying by credit card in the EU. 

Do you want to use your credit card to withdraw money from an ATM? Then you are charged an extra fee, just like in the Netherlands. You pay a transaction fee for each ATM transaction. That is about 4 percent over the amount withdrawn with a negative balance. These fees vary for each card and credit card company. 

Are you withdrawing money outside the EU? In that case, you also pay an exchange rate surcharge.
 

#extra-fees-withdrawing-money

Are you planning to apply for a credit card? Compare providers and pay attention to the following points:

• What is the annual fee for the credit card?
• What is the spending limit?
• What are the income requirements?
• How to repay: the full outstanding amount every month? Or pay in instalments? And what interest do you pay for repayment?
• Is there a BKR (loan registration) review and registration?
• What are the transaction and withdrawal fees?
• Is there a delivery guarantee or a charge-back scheme?
• Does it come with purchase insurance? What conditions apply?
• Are there extra benefits, such as loyalty points or savings system?

#buying-a-creditcard

A chargeback, also known as a disputed payment, is demanding your money back from a credit card company or bank. You have made a payment to a business owner and then ask the credit card company or bank to reverse this payment.

When to dispute a payment?

You can dispute a payment if a service or product has not been delivered. If you do not recognise the payment. If you have received a counterfeit item. If an order is lost en route. If you have a dispute with the entrepreneur that you are unable to resolve together. Or if you are dealing with fraud.

#chargeback-

Sometimes it is not possible to reach a solution together with the seller. For example, because the seller does not keep his promise. The seller does not want to give you your money back even though you are entitled to a refund. Or because you are dealing with a fraudulent trader. In situations like this, the charge-back option is a godsend. 

You then dispute the payment with the credit card company. If the company considers your dispute to be justified, it will recover the amount from the seller and credit the amount of the transaction to your credit card account.

#advantages-chargeback

Did you pay for a purchase with your credit card, and the seller does not keep their promise? Always contact the seller first to find a solution together. Not possible? Then you can dispute the payment with your credit card company or bank.

When to dispute a payment?

You can dispute a payment if a service or product has not been delivered. If you do not recognise the payment. If you have received a counterfeit item. If an order is lost en route. If you have a dispute with the entrepreneur that you are unable to resolve together. Or if you are dealing with fraud.

#dispute-payment

You can dispute a payment by submitting a request to your credit card company. For a dispute, you usually need to fill out a form. You can find that form on the credit card company's website. You will send additional documents as proof. You must also substantiate why you wish to dispute the payment. 

If the credit card company finds your dispute justified, they will credit the amount of the transaction to your credit card account. Exactly how the dispute works varies from one credit card issuer to another. Always check the credit card company's website or contact them.

#how-to-dispute-a-payment

Most credit card companies, such as Mastercard, Visa or American Express, allow you to submit a chargeback request to dispute a payment. Before you apply for a credit card, always check the conditions first.

#which-payments-to-dispute

A prepaid credit card is basically the same as a debit card. It is a prepaid debit card. You deposit money on the card, and you can then use this to pay. 

You can apply for a prepaid credit card without BKR verification because you have to deposit money on the card before you can use it. You are not borrowing money. 
 

#what-is-a-prepaid-creditcard-

One advantage of a prepaid credit card is that anyone can qualify for it. Because you are not taking out a loan, you can apply for the card without a BKR check. 

Other benefits of a prepaid credit card are: 

• More control over your spending
  You cannot spend more money than you have.
• No interest
  Because you deposit money on the debit card yourself, you are never stuck with loans. And therefore you do not have to pay interest.
• International payments
  You can pay with a prepaid credit card almost everywhere in the world, just like a regular credit card. This does not apply to your bank card, for example. Some restaurants or shops do not accept bank cards when abroad.
• Pay safely 
  In case of fraud, you never lose more than you have on the payment card.

#advantages-of-a-prepaid-creditcard

A disadvantage of a prepaid credit card is that often all sorts of variable costs are charged. For example, for depositing money on the payment card. But you will also be charged if you do not use the prepaid credit card. 

Other disadvantages of a prepaid credit card, are:

• Payment card not usable for car rental 
  The prepaid credit card is often not accepted by car rental companies. When picking up the rental car, the rental company blocks an x amount for the deposit. This amount will not be withdrawn from your account, but it will be deducted from the spending limit of a credit card. With a prepaid credit card, it is not possible to block an amount of money.
• No charge-back policy or purchase insurance
  With a prepaid credit card, you often do not have the option of submitting a refund request (charge-back), and your purchases are usually not insured either.
• Limited service
  Many prepaid credit card providers are not located in the Netherlands. If you have a question or complaint, you can not go to a Dutch customer service. You are also likely to have to deal with the disadvantages of the time zone difference. 

#disadvantages-of-a-prepaid-creditcard