3 Reasons Your Customers Prefer Debit Cards Over Cash

In our last blog, we listed a few of the main reasons most of your customers prefer using their credit cards over cash when shopping. One driving theme throughout each reason is convenience. Simply put, using plastic to pay for purchases makes life a lot easier than using cash. Now, while credit cards offer numerous benefits, debit cards are right up there in the “providing convenience” department.

Just like credit cards, debit cards can be replaced if lost or stolen, absolving their users from any responsibility for fraudulent charges. However, debit cards offer your customers many other perks that credit cards do not.

Here are three reasons your customers prefer debit cards over cash:

1. Debit cards help consumers to avoid going into debt.

As you’re aware, credit cards enable shoppers to make purchases for items they not yet have the money for. With credit cards, consumers are able to pay their balances off over time. By doing so, interest charges are accrued. Debit cards, however, only allow shoppers to spend up to the amount of money they have in their chequing accounts. As a result, it is impossible to owe any balances or accrue any interest.

“For many, the appeal of debit cards is that you don’t go into debt when using them,” writes Justin Pritchard on TheBalance.com, “They limit spending to what’s available in your checking account. There also won’t be interest charges each month.”

2. Debit cards don’t charge any additional fees.

As mentioned, debit cards help their users to avoid fees such as interest charges. As well, while many credit cards offer rewards programs and a host of other benefits, they also come with annual fees. Debit card users are free to go shopping without the worry of having anything extra to pay for other than their purchases. There are no annual fees or interest charges on a debit card.

“Frugal consumers may prefer to use debit cards because there usually are few or no associated fees, unless users spend more than they have in their account and incur an overdraft fee,” writes Mark P. Cussen on Investopedia.com, “By contrast, credit cards generally charge annual fees, over-limit fees, late-payment fees and a plethora of other penalties, in addition to monthly interest on the card’s outstanding balance.”

3. Debit cards don’t require credit checks.

For some consumers, getting a credit card can be difficult. It’s important, of course, to maintain a good credit score by proving you’re capable of repaying loans. When applying for a credit card, one must disclose his/her income as well. A debit card, on the other hand, is incredibly easy to attain. As long as you have a chequing account at a bank, you can get a debit card. When you use that debit card, you’re using the money in that account. It’s all very simple.

“Debit cards are easier to get if you have bad (or no) credit,” assures Pritchard, “If you can get a checking account, you can get a debit card. You don’t have to apply for it separately like a credit card.”

Do you accept debit cards at your store?

At Divvia, we offer a wide variety of top-of-the-line payment terminals to help your company easily process debit card transactions. To learn all about them, please don’t hesitate to call us at 1-877-748-2884 or send us a message on our Contact Us page!

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