In our last blog, we pointed out that with the holiday shopping season now upon us, there is a lot more shopping being done than usual. As a result, there are a lot more credit cards in use as well. It’s no secret that Canadians prefer paying for their purchases – especially their large ones – with credit cards over cash. And because there are so many benefits to credit card use, merchants should make sure to offer that paying option.
Here are three reasons your customers are being encouraged to use their credit cards:
1. Credit cards protect against fraud. When you make a purchase with cash, there is no way for it to be protected against loss, theft or damage. Credit card issuers, however, offer their cardholders the benefit of knowing that their purchases are protected. This is especially important in a world where there are so many unfortunate incidents of fraud. On Credit.com, Jason Steele explains why fraud protection encourages credit card use.
“While both debit cards and credit cards protect shoppers against unauthorized charges, there is a key difference,” he writes, “When a fraudulent charge is processed against a debit card, the funds are immediately removed from the cardholder’s account — often their primary checking account. Yet an unauthorized charge to a credit card merely appears on the cardholder’s statement, and can be contested before any money is actually missing from the consumer.”
2. Credit cards help customers get the best prices. All shoppers search for deals during the holidays. At a time when they are likely to spend more money than at any other time of year, it pays to look for bargains. It also pays to use a credit card as many credit card issuers offer price protection. As explained by Miranda Marquit on WiseBread.com, some credit cards offer this very handy service.
“Some credit cards, especially the premier cards that charge annual fees, include price protection,” she states, “If you find a lower price on an item you have already purchased, you can be refunded the difference. This can be very useful when shopping holiday sales and buying gifts for others. However, price protection usually comes with a time restriction. Normally, the lower price has to appear within 30, 60, or 90 days. Check the policy so that you have an idea of the time limit.”
3. Credit cards allow for online shopping. We’ve blogged several times in the past about the popularity of online shopping. And it’s never more popular than during the holiday season. Can you go online and make purchases with cash? Not exactly. A credit card is practically mandatory. If you’d like to boost sales, you’d be making a wise choice by allowing your customers to shop via your website using their credit cards.
Steele explains that shoppers are encouraged to use credit cards for their online shopping because their purchases are protected. “If an online retailer fails to deliver the goods, or goes out of business before doing so, credit card users can request a chargeback from the their card issuer if the merchant doesn’t offer a refund,” he informs, “In these cases, the card issuer will immediately issue a temporary credit, which will become permanent once the claim is documented.”
Are you ready to accept credit cards as methods of payment in your store? For more information about how to begin accepting credit cards in your store, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost. Be sure to ask us about our Countertop and Wireless options!