There are many reasons to choose credit cards and debit cards over using cash. The benefits of using each card have been detailed in many of our past blogs. However, there is a debate that continues among card users about which of the two types of plastic is more beneficial than the other. In many cases, Canadians prefer debit cards because of the lack of fees associated with their usage.
They also like the fact that debit cards allow them to use their own money, so they are not enticed to make purchases that they can’t afford. These benefits were listed in yesterday’s blog. As mentioned, Interac uses the concept of using your own money as a featured benefit in their advertising. Mark P. Cussen of Investopedia.com also offers his insight on the benefits of using one card over the other.
In yesterday’s blog, we pointed out some of the advantages that debit cards have over credit cards. In today’s blog, we’ll discuss the benefits of credit over debit. As a business owner, keeping all of these advantages in mind is extremely important. By allowing your customers to make their own choices about which card to use, it allows for your business to benefit from this ongoing debate. Let’s discuss some credit card advantages:
Reward points. We’ve lost count of the number of times we’ve mentioned rewards points as a top choice benefit for credit card users all across Canada. “Unlike with debit cards, credit card users can reap cash, discounts, travel points and many other perks by using rewards cards,” reiterates Cussen, “Smart consumers who can pay off their cards in full on time every month can profit substantially by running their monthly purchases and bills through them.”
The building of credit. We’ve also pointed out the fact that consumers have the ability to establish credit scores simply by using their credit cards. Over time, the building of credit helps them to secure major purchases such as cars or homes. As Cussen explains, “credit card use is also reflected on the customer’s credit report, which allows responsible spenders to raise their scores with a history of timely payments.”
Warranties and insurance. This is a big one. Customers love using credit cards in order to protect their purchases. “Credit cards can also provide additional warranties or insurance for items purchased that may exceed those of the retailer,” Cussen points out, “For example, if an item bought with a credit card becomes defective after the manufacturer’s warranty has expired, check with the card company to see if it will provide coverage.”
Flexible payments. Credit cards help people to make purchases that they can’t pay for right away. The ability to pay off balances over time helps people to make big and important purchases. Nolo.com explains why having a grace period is a great option: “If you have a grace period on your credit card…and you pay your bill in full each month, you get the benefit of the use of the money in your bank account until you pay your credit card bill at the end of the month.”
At Canadian POS Corporation, we understand the importance of being able to have options. Canadian shoppers have proven that they like taking advantage of the different benefits that come with their credit cards and debit cards. It’s up to you to give them the option of which card to use when they visit your place of business! To accept plastic using top-of-the-line POS terminals, call us at 1-877-748-2884 or email us at info@localhost.