For those people who are afraid to use a credit card and is fine using other modes of payment like hard cash,debit cards,cheques,demand draft etc. Please read through my story below
It all started with me deciding to purchase product X from rediff shopping. I already had an account with rediff shopping and had brought a book from there 2 months back. This time it was a costly product and the product had to be shipped to a different address. I filled out everything and just before the last step found the shipping address had a mistake. Since Rediff was the least user friendly ,i could not find out how to change the address. After some navigations i finally reached the address page again ,corrected the info ..proceeded to checkout (rediff is very bad in this as it does not show my shopping cart before checkout!) and finally got the item purchased.
The problem was that my cart had 2 times X and i got 2 SMS confirming that X was purchased. oops since it was the first time i had such an experience,i didnt know what to do.I immediatly called up ICICI bank and asked them if tehy could cancel the transaction .But they told me that they cannot do that and i have to talk to the merchant (Rediff)
But from the time of purchase I had some advantages like:
1. rediff needs to confirm my credit card authenticity before they could ship the item as it is a high value transaction .
2. A person from rediff called me up and i could explain the situation and he immediately canceled up one oder.
3. The merchant did not have the item in stock .so rediff has to reverse my oder.
Now since it was a credit card .all these time i did not lose any money and the only problem for me was that the credit limit has been decreased and the amount for which i made my purchase was locked in my credit card.
Only when the merchant acquires my money would the CC be actually charged. Isnt that wonderful...I mean if i had used my debit card..there would be no way for rediff to give me back my money and according to their FAQ ,they would send me a gift vouchure for the amount i canceled and i can redeem the money by making purchases in rediff
So in a credit card transaction,the interests of the buyer and the seller both are protected. And with making transactions with stores like rediff who doesn't even provide a good email support leave alone phone support using a credit card is the best option available as there is no immediate loss of money!
Please find below a journal on how a credit card works