Enjoying The Debate Between Credit And Debit

There is a very interesting debate going on in the world of consumerism these days. And it greatly works to the benefit of merchants that offer customers the option of paying with either credit or debit cards. The debate, as you may have guessed, is based on what option is best for Canadian shoppers. Should they pay with their credit cards or with their debit cards? Which type of plastic offers the most benefits?

Many would argue that credit cards give customers added value when making their purchases. A large number of Canadians love earning rewards points whenever they swipe their credit cards. By getting more for their money, many customers feel that credit cards are they way to go. However, a new Interac campaign is speaking out against the whole “pay using credit” phenomenon.

As we blogged about last week, Interac is currently running commercials that promote their new slogan “Be In The Black”. As Rebecca Harris of MarketingMag.ca describes it, “the platform extols the benefits of using your own money for everyday purchases instead of paying with credit cards (a behaviour encouraged by brands such as Visa in recent years).”

Rob Feightner, is the group account director at Zulu Alpha Kilo, which is the agency of record for Interac Association. He adds that “the call to action behind ‘Be in the Black’ is we want Canadians to take back control of their money and their financial destiny. There is a role Interac can play in that and we’re part of the solution.” So is paying for your purchases using Interac more beneficial than using credit cards?

The truth for customers is that it all depends on how they manage their money. With Interac payments, debits are made directly from a customer’s bank account. With credit card payments, customers are given the option to pay their balances over time. The key word here is “option”. Of course, customers aren’t forced to extend their balances and pay interest charges.

The new Interac ads highlight the fact that credit card companies charge interest on purchases. This, of course, is true IF you carry a balance. “(Purchases) can accumulate over time and get people into trouble, and no one likes to pay interest on top of purchases they’ve already made,” said Ron Smrczek, who is the executive creative director at Zulu, “The aim of the campaign is to get people back into the behaviour of using their own money.”

So what does this mean for you as a business owner? If you’re accepting credit and debit as payment options, it means that business is likely to pick up even more! Consider the fact that Canadians may have strong opinions about this debate and choose to use their cards of choice even more. At Canadian POS Corporation, we support whatever payment choices Canadian shoppers decide to make.

And you should too! Our POS terminals accept Visa, MasterCard and Interac payments among other card types. The more advertising campaigns out there to promote these payment options, the better! As long as you have the ability to accept plastic, you’re putting your business in a great place to succeed. Contact Canadian POS Corporation at 1-877-748-2884 to either upgrade your machine or start with your first POS terminal today!