As a business owner, you’ve got to love the ongoing debate about which of the two payment types carry more benefits – credit cards or debit cards. As you’re well aware, Canadian POS Corporation advocates the use of both. Or, to be more specific, we encourage merchants to provide the option to their customers so that they may choose between the two.
Truthfully, it shouldn’t really matter to you if a customer chooses to pay with either credit or debit. Your POS terminal is fully equipped to accept either payment option. Nevertheless, the majority of Canadian shoppers tend to prefer one over the other. In a few of our recent blogs, however, arguments have been made that credit cards tend to provide more benefits to customers.
One of the biggest benefits, as pointed out by numerous writers, is the travel rewards plans that many credit cards offer. However, as Gail Johnson writes on Yahoo.com, not all rewards plans are created equal. What customers are looking for from their rewards plans will determine which cards they should be using. So what do Canadian shoppers really want from their cards?
Johnson writes that a Scotiabank study found that Canadians consider the quickness they are able to earn their points as the most important facet of a rewards plan. 42 per cent of the survey’s respondents, in fact, indicated that they prefer to earn points fast. 30 per cent of Canadians consider the specific travel rewards plans associated with their credit cards as an important factor in choosing a card.
Points, by the way, can be used for more than just travel. Some Canadians prefer to use their points quickly for smaller non-travel items. But the majority of those who participated in the Scotiabank survey admitted that it’s all about going on vacation! 74 per cent of travel reward credit card holders who redeemed their points within the year prior to the survey used them for travel.
Only 27 per cent redeemed them for non-travel rewards, reports Johnson. She goes on to write that since every customer has his or her own ideas about what benefits are the best, there are some important things to discover in order to choose the right credit card. They include learning if the rewards plans are limited to specific airlines, if there are travel restrictions and if the points can be redeemed for hotels.
In addition, customers should find out if they get bonus points for signing up, whether or not their points increase with everyday purchases and if their points ever expire. Johnson writes that consumers should start their research at CreditCards.ca as the website offers detailed breakdowns of several types of credit cards. “Remember too that the most competitive rewards go to people with stellar credit scores,” she concludes.
Now imagine your business was still only accepting cash as a method of payment! You would be unable to offer your customers all of the rewards that come with credit card spending. If you’d like to upgrade your POS terminal, or if you are yet to accept plastic, contact Canadian POS Corporation at 1-877-748-2884 today. We can have you all set up within three days. It will be very rewarding!