Analyzing The Cash VS. Credit Cards Debate

There are a ton of reasons for you to accept credit cards as methods of payment at your place of business. But perhaps the best one is that the way in which we used to view paying with our credit cards is out. In other words, credit cards used to be viewed as payment options for large purchases. If a person needed to pay for a big ticket item over time, then he or she was mostly likely to use a credit card to make the purchase.

Generally speaking, everything else would be paid for with cash. But these days, that thinking is long gone. For most people, it is anyway. Using credit cards on a regular basis – not just for big purchases – has become the norm in today’s world. There are also a ton of reasons for this. Among them are the rewards points that it offers consumers. Here’s an example of a conversation between two people that highlights the old and new ways of thinking about credit cards.

The Rewards Debate

Old: “I always make sure to have some cash on me. If I have to buy something that’s just a couple of dollars, I may as well use cash. I only use my credit card for big purchases. Obviously, I’m not going to carry too much cash on me. So if I have enough cash, I use it. And if I don’t, I use my credit card. I don’t see the point of pulling out a credit card when something only costs a couple of bucks.”

New: “Why pay for anything with cash when you don’t get anything in return for it except what you actually bought? When I use my credit card, I’m guaranteeing myself points. I’ve already used these points to get free airline tickets, hotel stays and car rentals. So I put everything on my credit card, no matter how big or small. That way, I accumulate points with every purchase I make, never giving myself a chance to miss out.”

The Saving Money Debate

Old: “When I keep cash on me, I make sure that I’m not spending any more than I have on me. That’s the way I save my money. If something is too expensive, I don’t buy it. Sure, there will be exceptions and something may come up where I have to spend more. But usually, I get by with just the amount of cash I keep on me. If I don’t have to go to the ATM for more within a week, I know I’ve been spending wisely.”

New: “By not using cash, I accumulate more interest in my bank account. I let my money sit an accrue interest by not withdrawing from the account until the moment when my credit card has to be paid. So, the way I see it, I’m actually saving money, and arguably even making money by not paying for things with cash. It may be a little at a time, but it adds up over time. It’s a lot better than not making anything at all on the money you’re saving.”

The Bookkeeping Debate

Old: “When I pay with cash, I know that I’m spending what I have on me and nothing more. It’s easy for me to remember how much I’ve spent if the only money I’ve spent is the cash that was in my pockets. Keeping tabs on my spending isn’t that hard. And if I really need to, I can just take a look at my bank statements to remember how much money I withdrew at any given time. It’s pretty easy.”

New: “When you take money out of an ATM, it doesn’t remind you about what you actually spent that money on. When you use a credit card, your monthly bills tell you exactly where your money has been spent. It’s a great way to maintain a sense of bookkeeping. I manage my spending a lot better seeing all of it in one place. For me, using a credit card makes it so convenient to make one payment once a month, instead of several over time.”

So do you think with an old or new mentality? Times have changed. It’s time to make sure you’re not being left behind. Accept credit cards and keep up with the growing needs of your customers. Call Canadian POS Corporation at 1-877-748-2884 today!