Credit cards, for a very long time, have been one of the easiest ways to get access to money since the invention of ATMs. Today, with several card solutions, it is possible to easily use your card to access money in different countries. Apart from ATMs, it is also possible to access money from the POS terminal with your card. However, there are instances where you might not be able to access your credit card. This could have easily become an issue as you could get stranded. Fortunately, with online banking platform of companies like Transferwise and n26 as well as the fact that we are always with our phones, we can easily survive even when our card is not handy. Some of the ways online banking has been a solution for those who do not have access to their credit card are explained subsequently.
Online transfers for local payments
Several companies receive transfers into their local account as a form of payment. Hence, for some people who do not immediately have access to their cards because it is not ready or because they forgot it at home, they could easily opt for direct transfer to a bank account. With this, they will be able to make any payments that they need to make.
Online transfers for international payments
Beyond making local payments, online banking platforms that support international money transfer have also made it possible to carry money across borders. The fact that it is possible to instantly make a transfer to the account of a company in their local currency within minutes has made it a very viable option for making payments. The implication is that when there is the need to pay for hotel bills or pay other companies they might have patronized in a foreign company, they do not need to make use of their credit card as they could just carry out a transfer. In most cases, the transfer is often cheaper compared to transferring through their local bank account, it is fast and it would be in the local currency of the receiving bank. Hence, there will be no issues of the company receiving less than they were supposed to. The fact that some deductions are sometimes applicable for POS deposits that the company bears makes online banking transfers even more preferable. The receiving company will receive the exact amount that the customer has transferred after they have deducted charges. The payer will be able to see the exact amount that the company or individual they are paying to will get in their local currencies and there will be no issues of discrepancies. This is why such platforms are also been increasingly used in paying freelance workers or workers that were posted to a foreign company.
One of the reasons why people need their credit card is to sometimes check their balance and know how much they have left so that they can plan accordingly. With online banking, it is possible to check your balance at any time, be it your independent platforms account balance or your local bank account balance. In most cases, what you will need is an Internet connection, your username and your password. You will be able to always check your account balance and be abreast of how much you have to spend. You will subsequently be able to make plans accordingly.
The implication is that there are some cases where you can deliberately leave your card at home when you know that every payment that you could have made with the credit card can easily be carried out with your online banking applications. This will also reduce the risk of losing your credit card and someone else using it to make payments on platforms where the individual will only need details on the card to make payments without requiring any further information that is not visible on the card.