In our industry, it comes as no surprise that some merchants feel that there aren’t enough benefits to accepting credit and debit cards as methods of payment. At Canadian POS Corporation, we understand that a big part of our jobs is educating Canadian business owners about how the many benefits of credit and debit card acceptance outweigh the rates that come along as a result. Firstly, we offer the most affordable rates in the business!
But, secondly, providing Canadian shoppers with the ability to choose which method they pay for their purchases with is giving them exactly what they want. To truly satisfy the Canadian consumer in 2014 and beyond, you must provide them with payment options. After all, there are many benefits available to them just for using their credit cards. Just yesterday, in fact, Jason Steele outlined six reasons people love to use their credit cards on Credit.com.
1. It’s provides a “free loan”. Steele points out then when people use their credit cards to pay for purchases and then pay off their statement balances on time, they are able to enjoy extra time to pay at no cost. Customers aren’t required to pay interest if they pay on time. Interest charges are often a reason that people use to avoid credit cards. However, a disciplined payment schedule will allow people to pay for purchases by getting a “free loan”, as Steele puts it.
2. It earns rewards for spending. Always a popular reason to use credit cards, the accumulation of rewards points makes credit cards very appealing. Why pay for something with cash when a credit card will give you bonuses such as airline tickets, car rental and hotel stays? As well, “some cardholders earn hundreds of dollars in cash-back rewards each year,” Steele reminds us. There are many more rewards available than just travel-related bonuses.
3. It helps to build credit. This is also one of the most popular reasons that people choose to use credit cards to pay for their purchases. It’s one of the easiest ways to build a credit rating that will allow for one to make major buys in the future. As Steele puts it, “a credit card can be extremely helpful in building a good credit history so you can qualify for better rates on big purchases down the road like a car or a house.”
4. It’s a substitute for car rental insurance. Speaking of travel rewards, credit cards are popular for their ability to provide insurances when cars are rented. Do you know anyone who rents cars using cash? Why would they? As Steele reports, “nearly every credit card comes standard with a no-cost collision damage waiver policy that covers you when you use your card to pay for the rental.”
5. It provides sign-up bonuses. Often, the simple act of opening a credit card account will earn a customer special bonuses. “The credit card business is one of the most competitive industries in the world, and card issuers are willing to go to great lengths to get new customers,” writes Steele, “So much so, that many cards will offer new applicants valuable points, miles, or cash back, just for a chance to earn their business.”
6. It protects against fraud. Unfortunately, some customers will experience fraudulent charges on their credit card accounts now and again. It’s not always possible to remain safe from identity theft, especially if a card is lost or stolen. Thankfully, credit card companies have programs in place to investigate such charges so that their cardholders are not held liable for fraudulent transactions.
Considering all of the benefits that credit cards provide consumers, doesn’t it make perfect sense for you to accept them as methods of payment at your business? Call Canadian POS Corporation at 1-877-748-2884 today to begin accepting plastic or to upgrade from your current provider. You’ll be glad you did!