Whether you shop on online platforms or at malls, you will encounter hundreds of offers during the festive season. Recently, the government also introduced MDR charges on UPI transactions, effective from October 15. The big question now is: which payment method should you choose this festive season to maximize your savings? Let’s compare cash, credit cards, and EMI options to help you decide.

How should you make the payment?
Different payment methods come with different associated costs. Using cash may incur ATM charges; UPI transactions might attract merchant-side MDR charges; and credit cards often involve processing fees. The table below helps you understand which payment method is best suited for your needs:

Payment Method    Advantages    Disadvantages / Hidden Charges    Advice for Festive Season
Cash / UPI / Debit Card    • No stress regarding EMIs or outstanding dues.

• Helps keep the budget under control. • You might miss out on major festive discounts offered on bank cards.

• Withdrawing a large amount of cash at once can deplete your emergency fund.
Best when you want a hassle-free shopping experience and a massive discount isn't a priority.
Credit Card    • Offers instant discounts (up to 10%) and reward points.

• Funds aren't deducted immediately (money stays in your account for a few days). • High interest is charged if the bill isn't paid on time.

Best Option: If you have the full amount available and can pay the bill before the due date.

No-Cost EMI    • No need to spend a large lump sum (maintains cash flow).

• Makes purchasing expensive items via installments easy. • You miss out on the instant discounts available on full upfront payments. • 18% GST is charged separately on processing fees (₹199–₹299) and interest (making the item more expensive).
Opt for this only when purchasing a high-value, essential item and paying the full amount upfront is not feasible.

What do the experts say?
Experts advise shopping prudently during the festive season, as offers that seem attractive now could potentially lead to financial loss later. Additionally, paying in cash is advisable; it helps you keep track of your expenses and ensures you do not incur any extra charges.

PC Social Media