Today, cash only businesses are few and far between. They still exist. But they are dwindling in numbers as store owners are finding that Canadian shoppers much prefer to pull out the plastic in order to pay for their purchases. Credit cards and debit cards are widely popular as they provide many benefits that exceed the simple ability to pay for purchases without the need for cash. And what are those benefits?
Here are three that you should let your customers enjoy:
1. Reward points. This wouldn’t be the first time we’ve blogged about this wonderful benefit to credit card use. And we’re betting it won’t be the last. Canadian shoppers love the fact that when they pay for purchases with their credit cards, they get more than the items being bought. Many credit cards offer reward points that allow consumers to get things for free. Travel and cash back options are among the most often sought-after rewards.
HuffingtonPost.com encourages shoppers to pick the credit cards that offer the rewards that best suit their lifestyles. “If you travel a lot, get a travel rewards credit card. If you prefer cash back, get a cash back rewards credit card,” advises the site, “Some cards offer 5 percent cash back on groceries or 3 percent cash back on gas, so only use those cards when you are grocery shopping or filing up. If you are constantly flying on a certain airline, get their rewards credit card and start racking up free flights.”
2. Credit building. Recently, a colleague of Canadian POS Corporation expressed to us his frustration about the hard time he was having earning a credit score without a credit card. Even though he has been paying a mortgage on a home for over twelve years now, apparently this fact isn’t enough for a bank to approve him for a loan. Having a credit card is a much better way to build a credit score, he was told.
“Many people don\’t realize this, but not using credit can dramatically hurt your credit score,” reports HuffingtonPost.com, “Your credit score is mostly based on your credit history and how you utilize credit. If you don\’t have a history and don\’t use credit on a regular basis, there is nothing to base a score on, so your credit score will be pretty low.” It can be argued that building your credit score should be considered another “reward” that comes with using credit cards.
3. Purchase protection. When cash is used to pay for a purchase, no purchase protection is provided. That is obvious. Credit cards, however, often offer their customers the ability to be reimbursed in the event of loss, theft or damage. Warranties on many products are also often extended through credit card companies. “Fraud protection is built in to many credit cards and it\’s easier to get refunded for fraudulent charges,” says the Huffington Post.
“Using cash should be safer, right?” they ask, “With all the hacking going on recently, it would make sense that using cash would help deter identity thieves. Sadly, that\’s not the case, unless you are stashing all your cash under your mattress. Banks are just as susceptible to hacks as credit card companies, many of which are banks.” So doesn’t it make sense to not limit your customers to paying with cash only?
Accept credit and debit cards with top-of-the-line Countertop and Wireless terminals from Canadian POS Corporation. For more information or sign up today, give us a call at 1-877-748-2884 or email us at info@localhost.