What’s the Best Credit Card for Online Shopping?

The “best” credit card for online shopping should have qualities that are important to you, as well as sound security and good customer service features.

This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

At-A-Glance

Depending on your spending patterns, the best credit card for online shopping might be one that’s easiest to obtain, offers rich rewards programs, or has low interest rates.

Some things are universally important when choosing a credit card, like top-notch security and customer service.

Certain credit card benefits may be more valuable depending on your spending habits and if you plan to pay off a large purchase over time.

Online shopping has become a way of life, especially for younger generations. A recent survey on consumer shopping preferences showed 38% of Gen Z adults preferred shopping online over in-store, while only 25% of Baby Boomers felt the same. When asked why an online experience was more appealing, convenience, time savings, and a more enjoyable experience topped the list.¹ But regardless of what draws you to shop online, if you’re paying by credit card, you may want to know which one is best suited for your online shopping style and how you can benefit the most from spending you’re already doing.

Here’s a review of popular credit card features to consider when choosing the “best” credit card for your online shopping.

Best Credit Cards for Online Shoppers Who Reap Rewards

Online shoppers tend to be savvy, often comparing product features and prices, searching for coupon codes, or looking for special shipping offers before checking out. They want their credit card to do double duty, earning rewards as they shop, or even triple duty by layering on a rewards shopping portal associated with the credit card. Rewards programs vary from card to card, some earning you cash back or points.

If you like to maximize rewards, it’s wise to select a rewards program that matches the kind of spending you do. Maybe you shop online for everyday items, like household goods, rather than large, one-time purchases, like personal electronics. Or maybe you prefer to buy from particular online vendors with rewards programs attached to associated credit cards, similar to a store credit card in the offline world. Either way, a rewards program should make sense for your lifestyle. For more on this, read “Earning Rewards and Cash Back While Shopping Online.”

Best Credit Cards for Shoppers Planning to Pay Over Time

If you’re still deciding whether you’ll pay your credit card in full every month or plan to pay off a large purchase over time, examine credit card interest rates and fees when selecting a credit card for online shopping. Credit card interest rates average close to 20% per year, which can lead to interest charges that offset even generous rewards programs.² It may benefit you to look for a 0% intro APR credit card. If you choose a 0% intro APR credit card, be sure you have a plan to pay off the balance before the introductory APR expires, and the rate rises.

Universal Credit Card Features Important for Online Shoppers

Some basic credit card features become even more critical for online shopping – namely, security and customer service. Experts agree that using a credit card is safer for online shopping than using a debit card tied to a bank account. Some enhanced security features of credit cards that may be especially beneficial for online shopping include:

$0 liability for unauthorized purchases.
Alerts for unusual activity.
Ability to freeze your account.
Virtual card numbers.

For more credit card safety tips, read “Holiday Credit Card Security: Keeping Your Credit and Identity Safe.”

How to Apply for a Credit Card as an Online Shopping Newcomer

Online forms make most credit card applications pretty straightforward. You’ll be asked for typical personal profile information like your name, address, and date of birth; basic financial data like income, bank accounts, and housing costs; and security facts such as your Social Security number and mother’s maiden name. If you’re new to credit, the following two options may be worth considering.

Secured credit cards: Getting your application approved might depend on your credit history. If you have a minimal or less-than-stellar credit history, a secured credit card may smooth the approval process. Because secured credit cards require collateral, you may need to put up a certain amount of cash to be eligible to make purchases on the card. Responsible spending and on-time payments may help you build credit over time.
Instant approval credit cards: This type of credit card may be another way to get online shopping fast. The benefit of this type of card is that your application is evaluated in real time, letting you know right away if you’re approved. A disadvantage is that instant approval credit cards sometimes – but not always – carry higher fees and lower credit limits. For more, read “How to Get an Instant Approval Credit Card—and Use it Instantly!”

The Takeaway

The “best” credit card for online shopping depends on which features are important to you – like how easy it is to apply for or whether the card offers reward programs or low interest rates. And, of course, don’t forget to consider security and customer service.

¹ “Tracking Trends in the Retail Industry,” Morning Consult

² “Consumer Credit – G.19,” The Federal Reserve

Kristina Russo is a CPA and MBA with over 20 years of business experience in firms of all sizes and across several industries, including media and publishing, entertainment, retail, and manufacturing.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

Using Your Credit Card Responsibly to Build Credit

Here are a few tips on how to use your credit card responsibly and how to use a credit card to build credit.

Tell me more

What Credit Card is Best for You in 2022?

Before choosing a credit card, make sure to do some research around what credit card is best fit for your needs. Here’s how to choose one today.