Exploring The Tough Decision Between Credit And Debit

\"ShoppingCanadians love paying with plastic. By now, you’re likely aware that Canadian shoppers are among the world leaders in paying for their purchases with credit and debit cards. This week, we’ve been blogging about the ongoing debate about which of the two card types carry more benefits. It’s an interesting debate because both cards are very convenient, but at the same time, very different.

“I much prefer using my debit card,” insisted one of our clients this week, “I like the feeling of knowing that I’m using my own money. The money gets taken out of my account and I’m done with it. I don’t have to think about waiting for a bill or having any interest go on top of what I’ve bought. To me, debit is much more simple and straight-forward and easier to use.”

“Credit cards for sure,” responded another client, “You get more out of it when you use credit cards to buy things. You collect points. You get more time to pay for the charges. This means my money can stay in the bank longer collecting interest. I pay one bill in full every month so I don’t even have to worry about interest. But I also like knowing that I can take my time paying if I have to.”

And so, the debate continues. But, as we mentioned, in our previous blogs, this is all good news for the Canadian business owner. For the most part, merchants who accept plastic accept both credit and debit cards, giving their customers the freedom to choose whichever card they like best. On Wisebread.com, Craig Ford writes about the differences between the two, suggesting that credit cards may have an edge over debit cards.

While credit cards seem to provide more added benefits, Ford notes that there is also a greater risk when using credit cards. To avoid debt, debit cards are the way to go. However, to have more flexibility and the chance to enjoy more rewards, credit cards are the ideal choice. Ford, himself, admits that it is all up to customers to decide which of the two cards are better.

For example, depending on a customer’s use of either card, one can be more expensive than the other. He explains that both cards have associated fees. Many debit cards attach fees depending on how many debits are made with the card. As well, if a person overcharges his or her account, he or she will also be hit with charges. And they can certainly add up.

Credit cards, of course, have interest rates. Ford writes that “looking at one of my credit card fees and finance charges, if I miss a payment, I\’ll pay between $15-$39. If I don\’t pay my balance in full, the default APR (annual percentage rate) is 23.99%. Yes, that is expensive.” Obviously, being behind on payments is a guaranteed way to paying more than you bargained for using credit cards.

Once again, it’s all about proper money management. And one thing is also for sure: both credit and debit cards offer more benefits that paying with cash. Cash gets you what you pay for and nothing more. Paying with plastic offers customers more payment options, rewards, security and other benefits that cash can’t give. Be sure to offer these options to your customers!

Contact Canadian POS Corporation at 1-877-748-2884 to either upgrade your machine or start accepting credit cards and debit cards today!

Scroll to Top