Uncovering Hidden Benefits Of Credit Card Use

Retailers throughout Canada are reaping the benefits of plastic acceptance on a daily basis. Our clients often report a jump in sales, an increase in visitor volume and an overall spike in customer satisfaction once they begin accepting credit cards and debit cards in their stores. In our last blog, we detailed some of the most telling statistics about credit card use in Canada. There is much evidence to support the fact that Canadians prefer plastic.

Naturally, as a business owner, you are interested in the benefits that this provides to your business. And there are many. According to the Canadian Bankers Association, “retailers are not required to accept credit cards, but do so in increasing numbers because that is the method of payment many customers prefer.” They go on to reveal a number of benefits that can be enjoyed by Canadian retailers once they become plastic-friendly.

One of them is the fact that credit cards provide fast, guaranteed payments. Shoppers want their transactions to be made quick and easy. And retailers want to ensure that they are receiving their money quick and easy too. The CBA reveals that plastic acceptance helps to reduce line-ups at checkouts which, in turn, allows for more customers to make purchases in quicker amounts of time. It’s important, however, to keep in mind that your customers get additional benefits too.

Remember that by accepting credit cards, you are providing more value to the purchases being made by your customers. The perks to using credit cards are many. Ramit Sethi, the author of I Will Teach You To Be Rich, writes that “credit cards are like a delightful gift from heaven. If you pay your bill on time, they’re actually a free short term loan. They help keep track of your spending much more easily than cash, and they let you download your transaction history for free.”

He goes on to describe how credit cards provide consumers with over $1,000 worth of benefits that they might not even know exists! The key to using them, insists Sethi, is to ensure that they are being paid off in full each month. Missing payments or accruing interest is no way to take full advantage of credit cards. As a business owner, it is important to know just how much easier you make your customers’ lives when you accept their cards. Here are three benefits.

1. Extended warranties. Do you sell big ticket items? When customers purchase expensive items, it goes a long way in securing their peace of mind if warranties are made available. As Sethi points out, credit cards generally offer automatic extended warranties up to one year. And while he admits that customers may choose to forego purchasing additional warranties from your company, it will encourage them to buy knowing that their credit cards have them protected.

2. Rental insurances. Sethi also notes that credit cards provide automatic car rental insurance and collision insurance. If you rent cars, you’ll be happy to know that your acceptance of credit cards is an incentive for customers to spend their money with you. Again, the peace of mind given to consumers is one of the best benefits of being a plastic-friendly operation. Credit cards come in very handy for travel expenses.

3. Trip-cancellation insurances. Speaking of travel expenses, Sethi points out that people enjoy buying airline tickets on their credit cards. That way, “if you get sick before you go on holiday, your credit card company will reimburse any cancellation fees.” Are you accepting credit cards at your place of business? Contact Canadian POS Corporation today by calling 1-877-748-2884 and let’s get you reaping the benefits of providing these extra benefits to your customers!