The debate between which type of payment card Canadian customers prefer the most rages on. Which card has more advantages? Credit cards or debit cards? Well, one thing is for sure. They both seem to be heavily preferred over using cash. In our last blog, we discovered that there are now some merchants out there that would specifically prefer to take credit or debit cards over cash. Is Canada really becoming a “cashless society” that quickly?
The bottom line is that if you are not yet accepting plastic, you’re missing out on many benefits. Not the least of which is the fact that plastic acceptance is widely known to increase sales and satisfy customers to the point where they are frequenting your establishment more often. It’s important to know just why it is so beneficial to you to offer credit cards and debit cards as payment options at your business.
The Small Business Accelerator Blog analyzes this. It explains that “customers expect rewards, cash back or air miles with every purchase they make” however, “merchants, on the other hand, have fought for years to reduce \’payment processing\’ fees.” The blog goes on to list the pros and cons of accepting credit and debit card payments. And while there are certainly fees associated with plastic acceptance, it still appears as if the benefits far outweigh the costs.
Here are some of the pros for accepting debit cards:
1. Debit cards are extremely popular. “Nearly everyone has a debit card,” says The Small Business Accelerator Blog. We suppose it’s hard to argue with sheer numbers. It has very often been reported that Canadians lead the world in debit card use. Clearly, it is a preferred method of payment. Does it not pay to accept them since they are so widely used? The blog goes on to note that “most people are familiar and comfortable with this payment method.”
2. Debit cards provide minimal risk. The blog writes that a “fast transaction with minimal risk” is another pro to debit card acceptance. Firstly, a customer must punch in a private PIN number in order to put the transaction through. That means that, unlike cash, if a debit card is stolen, it cannot be used without this particular security feature. As well, debit card transactions happen quickly without the need for fumbling for change or counting the correct amount of cash.
Here are some pros for accepting credit cards:
1. Credit cards reward your customers. As mentioned earlier, consumers love to get more for their money. And when you allow them to use their credit cards in your store, that’s exactly what you’re giving them – more! Depending on their card, explains the blog, “they may earn anywhere from 0.5 – 2% back in rewards, cash or other incentives.” As we all know, cash buys you only what you pay for and nothing more.
2. Credit cards provide quick and efficient transactions. The blog also notes that credit card transactions save time. But furthermore, they also allow for transactions to be completed when the cardholder is not even present. By now, we should all know just how popular online shopping is. Without credit cards, online shopping would be a lot more difficult. As the blog reminds us, credit cards make it so that transactions “can be completed in person or over telephone/internet.”
If you’re a business owner who has not yet begun to accept plastic, it’s time to enjoy the benefits that plastic acceptance can bring you. As mentioned, doing so will provide many benefits to your customers. And that means more customers for you! Simply give Canadian POS Corporation a call at 1-877-748-2884 to learn more about the top-of-the-line POS terminals that we offer, and the very affordable rates that we have available.