Credit Cards Serve And Protect

Over the past couple of weeks, we have been detailing the many benefits that come with using credit and debit cards as methods of payment. And while Canadian POS Corporation has no favourites – we encourage the use of both – our blog has duly noted the fact that there is a debate taking place throughout Canada about which type of card provides more benefits.

Recent Interac commercials encourage Canadians to “Be In The Black”. In other words, it is more beneficial to use debit cards to pay for your purchases because you are using your own money. Not borrowing against credit ensures consumers that they are not paying any interest on their purchases. However, as Stephen Weyman points out on HowToSaveMoney.ca, you don’t have to pay any interest if your balance is paid in full.

Weyman, in fact, outlines a number of benefits that are provided to Canadians by credit card usage. Using debit cards, he writes, is something he doesn’t even quite understand. The numerous rewards offered by credit cards, Weyman points out, are reasons enough to use credit over debit. In addition to rewards points, credit cards benefit customers by providing a number of insurance policies.

Purchase Protection. “If your purchase is lost, stolen, or damaged within the first little while you will be refunded the entire purchase price,” writes Weyman. Different credit card issuers may have different polices regarding their purchase protection plans, but the point being made is a strong one. Debit card transactions don’t generally come with an insurance policy on goods purchased.

Extended Warranty. Paying with credit also extends the life of your purchase. According to Weyman, “the best cards will give you up to an additional 2 years of warranty on most products you purchase using the card, many others will give 1 extra year.” Again, we’re not aware of any debit card that provides shoppers with the same benefit. Warranties are based solely on the terms defined by the manufacturer of the product purchased.

Price Protection. Not all credit cards may offer this benefit. But as Weyman explains, “if the product you bought goes on sale anywhere else, you can get a refund of the difference by calling in with proof.” Naturally, customers are bound to love such a feature. It pretty much guarantees them that they will always pay the lowest prices for the items of their choice. Do any debit card programs offer this?

Travel Insurance. Weyman notes that credit card issuers offer a number of insurance policies when travel costs are paid for using their cards. Such policies cover medical bills while outside of your home country, cancellation, trip interruption, accidents that occur abroad, flight delays, baggage loss and delay and rental car coverage. Can you get any of the above with a debit card?

To reiterate, Canadian POS Corporation sees no wrong in using either credit or debit cards to pay for purchases. We do, however, see a lot of wrong in merchants not offering their customers the option of choosing either type of card to buy their items! To begin accepting plastic today or to upgrade to a top-notch POS machine, give us a call at 1-877-748-2884.