Weighing The Benefits Of Credit And Debit Cards

Over our past two entries, the Canadian POS Corporation Blog has been taking a look at the ongoing debate between credit cards and debit cards. Which of the two are better to use? Which of the two carry more benefits? The true answer lies within each of our own personal needs, goals and spending habits. Certainly, there are benefits to both. And naturally, we recommend that business owners accept both kinds of plastic.

This ongoing debate is actually great news for Canadian business owners. At the end of the day, your POS terminals should be providing you with access to accepting both credit cards and debit cards. Once you’re doing this, you’re guaranteeing yourself increased sales, repeat business and customer loyalty. But in today’s blog, we’d like to take a look at some of the differences between the two types of plastic.

On Wisebread.com, Craig Ford writes that there are definite differences between credit cards and debit cards. And, as a result, each has its own set of benefits. Which card is best for which customer all depends on what customers are looking to get out of their spending habits. Ford notes that using credit cards is much the same as getting a loan while using debit is basically using your own money. So which is better?

Credit cards offer the best card protection benefits. Ford notes that using credit provides customers the peace of mind in knowing that they are protected against fraud. Credit card companies are known to open investigations into unknown charges in order to protect their customers. He notes that credit cards are also known for protecting purchases from damage, theft and loss during delivery.

Debit cards are best for avoiding debt. Ford writes that the strongest argument in favour of debit cards is that they help customers control their spending. Many people have been known to cut up their credit cards simply to avoid going further into debt. Sounds silly, doesn’t it? Is it that hard to control your spending? Nevertheless, customers can play it safe by using debit knowing that it’s their own money they’re spending.

Credit cards offer customers more rewards. One of the biggest benefits provided by credit cards is the fact that they allow for shoppers to earn points that are often put towards travel. Some debit card issuers offer point systems as well, but they don’t seem to be as beneficial as those offered by major credit card companies. For added value to purchases, customers generally prefer paying with credit.

Credit cards are better for renting cars. An associate of Canadian POS Corporation recently reported that during his recent three day trip to Miami, he rented a car. The only problem was that he was charged for four days instead of three. The rental company was of no service to him in trying to resolve the matter. He contacted his credit card company to investigate the situation and he ended up having his money reimbursed in full!

There are, of course, many other benefits to using both credit and debit cards. Interestingly, it would appear as if Ford’s perspective favours credit cards. He notes, however, that people should choose whichever option best helps them to best manage their money. But, at the end of the day, your business should offer both as payment options.

Contact Canadian POS Corporation at 1-877-748-2884 to either upgrade your machine or start accepting credit cards and debit cards today!