There are many digital wallet applications like Google Pay, Samsung Pay, and Apple Pay which allow you to spend your money more conveniently. It also eliminates the need to carry your wallet with you, which is filled with credit and debit cards. You can directly connect these cards with your digital wallet application. These apps give you ease to pay money from your smartphone, whether you are shopping in a store, or eating something in a restaurant. Nowadays, there are many payment terminals available, that allow consumers to pay from their mobiles rather than giving cash.
How digital wallet works?
Digital wallets are the mobile applications, that you need to download on your phone to start using digital payment methods. Once your account is created, you need to add your credit card to the digital wallet application, and add complete information to it. If you have multiple credit cards then you need to decide which one to choose, that suits you best for online payments.
After completely connecting the credit card to the digital wallet, you can start executing payments online. You need to make sure that which card is set on top in your wallet, which will be automatically used for future purchases. The top card could be the most recent one, that you choose to purchase something from the app.
To overcome this issue, you can set your most prioritized credit card as a default payment method. You can also wave your mobile phone near the payment terminal, to make a payment from your digital wallet. The details of your credit card will be transferred to the payment terminal, and your transaction will be executed.
Maximizing Credit Card Rewards with Mobile wallets
It is extremely important to have a better understanding of connecting numerous rewards credit cards to your digital wallet app, and how to align a specific card on top of your wallet. Apple wallet users can easily pull and dive their cards into the wallet, to make it on top. The main objective is to choose a specific card for payment, to earn rewards on that purchase. Here are the tips from which you can earn maximum rewards, while spending your money via mobile wallet applications:
- Examine the Reward Structure of each credit card
You need to take care of each card regarding the credit points, miles, and cashback you will earn from them. This helps you in gaining a better knowledge to understand the reward structure of each card. If you possess a cashback card, then you need to have thorough information about how you can earn rewards from it. Some cards offer a specific percentage based on each purchase, while some offer rewards based on the category of the credit card they possess. These credit cards provide multiple percentages to their users every three months with a cash-back bonus for distinctive purchasing categories.
- Evaluate Multiple Expenses Arrangements
You can analyze your monthly expenses habits, to determine where you spend the most of your money. If you shop at the shopping store every week for your groceries, then it will be beneficial for you to redeem the grocery reward from your credit card. It also provides some rewards on specific days, on which you could shop for groceries, and gain some reward points from it. You need to make sure to select the right card, that gives you rewards on shopping otherwise your payment will not give you any reward, if the transaction is generated from another card.
- Reward points for New credit cards
If you own a new credit card, then you can add it to your digital wallet application, and find a sign-up reward bonus if it is being offered. Some cards require a specific spending amount from the card to gain reward points. You can earn reward points from these cards by making them a default payment method in your digital wallet app. This will help you to reach the required limit, and break the threshold to earn rewards from it.
- Earn Quarterly rewards
Some credit cards allow their users to get a higher reward rate based on specific purchasing categories. Sometimes paying from digital wallet applications is included in their quarterly bonus category. You can earn a higher reward, if you pay for something via your mobile wallet. Some credit cards offer higher reward rates only on a specific digital wallet application, so you need to cross-check it. These bonuses have also spending requirements throughout the quarter, as some cards require a minimum spending of $1500 in this specific timeframe. You also need to sign up for each quarter, to activate the bonus reward at a higher rate.
- Discover multiple redemption options
You can determine the redemption options of your credit card by visiting the reward portal for each card. If your credit card gives cashback, then you can earn rewards straight from bank statement credits. If your card offers miles, then it also provides comprehensive guidance on how to redeem it for purchasing airplane tickets, hotel stays, and more. You can also gain more reward points from gift cards, buying products, and contributions to charity. Reward points and miles are more valuable, as compared to other reward options. Some cards offer more travel points/ miles, if you book your travel tickets via their suggested portal, and you can earn up to 25 percent points from them.
Conclusion
Credit cards are extremely beneficial for you as they provide reward points on various purchases. These rewards are in multiple forms offered to their users like reward points, cashbacks, and travel points. You can pay for your monthly expenses via credit cards and gain more reward points. Rewards credit cards also provide additional benefits like protection against fraud, building credit history, not being connected to saving accounts, etc. Knowing how to maximize the reward points could help you gain extra reward points in many ways. You can gain the most out of your credit card by spending strategically.