Holiday shopping sales rose this season with shoppers favoring the convenience of online stores over visiting retail locations. Total U.S. retail sales for Nov. 1 through Dec. 24 grew 3.4% from last holiday season, according to a Mastercard SpendingPulse survey that tracked retail spending trends across all payment types, including cash and check.
The area that had the greatest spike in sales was e-commerce, rising 18.8%, up from 18.4% in 2018. And holiday e-commerce sales made up 14.6% of total retail spending.
"Due to a later than usual Thanksgiving holiday, we saw retailers offering omnichannel sales earlier in the season," Steve Sadove, senior advisor for Mastercard, said in the press release.
Department stores saw overall sales decline 1.8% but online sales grew 6.9%, which emphasizes shoppers' e-commerce preference.
How to use a credit card to your advantage when online shopping
If you're still shopping for gifts, a credit card is a great asset that can earn you rewards for holiday shopping and help offset the cost of presents. Here's how to use a credit card to your advantage when online shopping.
- Check for free shipping perks. American Express and Citi are two issuers that offer cardholders free two-day shipping at over 100 online sites with ShopRunner. This is a great way to get gifts fast and avoid rush shipping costs.
- Be mindful of bonus rewards categories. Many credit cards offer bonus rewards in select categories, such as Amazon, Target and department stores (which include online purchases). Make sure you use the best credit card for each site and activate bonus categories as needed.
- Look for exclusive shopping discounts. Your card issuer may provide special deals on eligible spending that typically give you either a percentage or set dollar amount of cash back, credited to your account. Check your account and load any offers before completing an eligible purchase.
- Only shop on verified sites. Holiday fraud is common, so make sure you pay attention to the links you click on. Before entering any credit card info online, make sure the site's URL starts with "https."
Here are some credit cards CNBC Select recommends for holiday shopping:
Citi Double Cash® Card
Rewards
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24
Welcome bonus
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
19.24% - 29.24% variable
Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
3%
Credit needed
Fair/Good/Excellent
See rates and fees. Terms apply.
Read our Citi Double Cash® Card review.
American Express® Gold Card
Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
Annual fee
$250
Intro APR
Not applicable
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees, terms apply.
Read our American Express® Gold Card review.
Chase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Read our Chase Sapphire Preferred® Card review.
For rates and fees of the American Express® Gold Card, click here.
