It’s no secret that Canadians love to use credit cards to pay for their purchases. And during each and every holiday season, we use our credit cards more than ever! It only stands to reason, considering that the end-of-year holidays bring about the shopper in all of us. Just before Christmas last year, Chris Sorensen of Maclean’s magazine noted that a 2014 Bank of Canada study found that Canadians are among the world’s biggest users of credit cards.
He goes on to note that contactless technology has helped to increase the use of credit cards in Canada. A 2015 study found that there was “an 11 percent increase in the volume of credit card transactions over the past five years, thanks to a ‘tripling of contactless credit card transactions.’ In other words, the easier banks and credit card firms make it to swipe, insert or, now, wave their cards at the cash register, the more willing Canadians are to borrow and spend.”
At Canadian POS Corporation, our years of experience have taught us that credit card use simply makes transactions a lot easier. They allow consumers to not worry about carrying around large amounts of cash on their persons. This is especially important during the holiday season as the amount of spending significantly increases. Credit cards enable big ticket purchases without fear of being unable to afford them.
Sorensen does point out, however, that credit card use does inevitably increase debt for Canadians. However, Canadian consumers are adept at making their minimum monthly payments. This shows that Canadians are not only big credit card users, but they are responsible credit card users as well. There are approximately 72 million credit cards in use throughout Canada, Sorenson notes.
“The country’s love affair with borrowing—households in Canada owed a record $1.64 for every dollar of disposable income they earned in the third quarter, according to Statistics Canada data released (last December) —is matched only by our fondness for paying with plastic, despite interest rates on carried balances as high as 25 per cent,” he writes.
So what do all of these statistics mean for Canadian merchants? Well, the evidence has been made clear. Canadians frequently use credit cards to pay for purchases because they simply need to. Especially when there is a need for increased spending (read: holiday season), credit cards come out in full force in our country. That means that it’s important for Canadian merchants to accept these credit cards.
At Canadian POS Corporation, we offer countertop POS terminals that provide fast and secure payment solutions. The Verifone VX 820 accepts all contactless, chip and magnetic stripe payments including credit cards, debit cards and gift cards. It also supports the acceptance of secure EMV chip cards, protecting you and your customers from counterfeit card fraud.
Our wireless POS terminals provide all-in-one mobile solutions that allow merchants to efficiently and securely process transactions anywhere. The Verifone VX 680 also supports a full range of payment types including credit cards, debit cards and gift cards. It has also integrated contactless technology that extends the convenience of “tap and go” payments and prepares you for the acceptance of mobile wallets.
For more information, call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost.