Use of credit cards for concerts: the risks if you do not establish fees for the payment method

After the return to normality of social activities such as concerts; the Peru It continues to host the presentation of various national and international artists and the response of the public has been very favorable for the groups that are visiting our country.

According to Jorge Fernandezpresident of Artistic, Cultural and Related Shows Sector of the CCL Services Guildin this last stretch of the year for the acquisition of tickets for concerts and for what will be 2023 with a large number of future presentations, that frenzy for wanting to secure tickets has lightened a bit regardless of the payment method or the cost of the same.

“90% of Peruvians who have bought concert tickets have done so with a credit card,” Fernández explained in an interview with the Lima Chamber of Commerce magazine.

Given this concern about the large number of users who used their Credit cards as a payment method for the concerts that have been held in 2022, Infobae spoke with two specialists in financial issues so that they can detail the pros and cons of making excessive use of it or, failing that, what alternatives we have to be able to make use of the cards without the financial statement being a headache.

yang changprofessor of the program Specialized in Finance from the University of Piuraproposes the scenario in which the user makes use of his credit card and that, the following month, the entire cost is paid, thus benefiting both the person who bought the ticket and the bank and the company organizing the event in every way.

“There are people who have made the purchase because, effectively, it is convenient for them to obtain a discount for the purchase and that is why they have used the credit card and then they have paid 100%, that is the ideal purchase that you buy with the card and then pay immediately; that way you win, the financial organization wins and whoever organized the concert wins”, he says.

On the contrary, chang explains that if the user uses the card responsibly, what he is actually generating is development for the local economy.

“If the person has made the purchase consciously and has analyzed how they are going to pay for it, there is no risk for anyone, that optimizes the market and makes the economy flow,” he says.

For its part, Jorge Carrillo, CEO of CyC Corp., considers that it is not a major problem that users make use of the Bank credits for the purchase of tickets for concerts, since it is not a common expense and, precisely for this reason, it would not be a financial complication for those who make these purchases.

“If it is a punctual purchase, it is not that he goes to concerts every week, taking into account that I must establish a term to pay it, beyond that, it does not generate consequences. The issue is that if it becomes a regular purchase not only for concerts but also to use my card for daily expenses and I start to split payments, that can cause a significant disorder in terms of managing personal finances, ”he says.

On the other hand, the professor of University of Piurawarns of the cons that could be applied if, in the short to medium term, users plan to use their Credit cards without having budgeted to pay the banking entities the loans in the corresponding terms in a scenario in which unemployment could increase and inflation as well.

“In an environment like ours where you have a recession in closings with very little growth, with high population growth and strong inflation, it implies higher unemployment in the next year, there will be no investments, therefore less capacity for absorb that population and therefore greater probability that as inflation grows and there is less employment, the probability of payment falls”, he said yang chang.

The pandemic for Covid-19 It is not an isolated event for the use of debit and credit cardseven, chang states that there has been an increase in this trend, which is why more local businesses offer the POS payment method.

“The Credit cards they have been used in those who have had the possibility to do so more actively because there have been more purchases by virtual means. Before the pandemic, the distribution of products from neighborhood stores, between 2 and 4%, had delivery and that percentage is charged in cash or with a POS; at the end of the pandemic that rate had risen to more than 16%, that is to say that all that group of businesses had the POS payment method, which implies an increase in the use of debit and credit cards”, he manifests.

Cheek coincides with changbecause now with the digitization of payment methodspeople carry less cash and at the same time, it implies that virtual applications and platforms are more effective and useful as a form of payment.

“The little positive pandemic that it brought is that digitized a lot of purchasespeople already carried less cash and opted for digital payment methods and the case of concerts is a clear example because they buy it through applications and the means of payment are usually credit cards”, he concludes.

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