In recent weeks, Interac has been heavily promoting its service using the new tagline, “Be In The Black”. Advocating the use of its debit cards, the company is not so subtly reminding Canadian shoppers that Interac cards allow them to use their own money instead of borrowing against credit and paying interest. Our recent blogs, however, have noted just how many benefits come with credit card usage.
So what are the benefits to using Interac cards over credit cards? We’ve scoured the internet for answers. And as you’ll notice from our recent posts, there seems to be a decided leaning towards using credit cards, thanks predominantly to their travel rewards programs. So do debit cards have a chance? According to Alicia Bodine of Yahoo.com, debit cards have a number of advantages.
No need to carry cash. Naturally, a debit card allows a customer to not have to carry cash on his or her person. As a result, one can rest assure that no cash will be lost or stolen. So there is some security and peace of mind that comes carrying an Interac card instead of a wad of cash. If your debit card gets stolen, the thief would need your PIN number in order to access your funds.
Easy cash withdrawals. Debit cards make it easy to get cash when you really need it. They’ve eliminated the need to go to the bank in order to make withdrawals. Essentially, any ATM machine will do. No matter what time of day or night it is, a debit card gives you access to your money, says Bodine. Your Interac card, therefore, is like having a teller in your pocket. As weird as that may sound, it’s pretty convenient.
Bodine does admit, however, that there are some disadvantages to using debit cards. Among them are the fees that some banks charge for using them. Adam Dachis of Lifehacker.com has also weighed in on the debit cards vs. credit cards debate. He admits that there are certainly advantages to both, but does add to Bodine’s list of debit card positives.
A much simpler system. Dachis writes that some people find debit cards to be a much simpler payment solution. In fact, there are consumers who feel that the points and rewards programs offered by credit cards are “nonsense”. Instead of thinking about all of that, debit cards allow customers to know that they using their own money and paying exactly what the items are worth. In other words, no interest charges make debit cards a safe bet.
Wider acceptance. Writes Dachis: “Debit cards do have one surefire, very enticing benefit over credit cards: you can use them in more places and and there are no minimum charges allowed. Some gas stations only allow debit, or provide discounts for debit card users. Some stores only allow debit cards or cash…While you can usually pay with your credit card, you’re more likely to find a place that accepts debit.”
Clearly, there are benefits to using debit cards over credit cards. Then again, there are many benefits to using credit cards over debit cards. So what is the best choice? As a business owner, all you care about is that customers are making the choice between using either card. You just have to make sure that your place of business accepts both! Maybe it’s time to upgrade your payment processing system.
Call Canadian POS Corporation at 1-877-748-2884 to get set up with your new POS terminal today!