Accepting plastic has pretty much become the Canadian way. In fact, Bankless Times reports that “Canada is leading the way to becoming the most cashless society on Earth, a recent report from Money.co.uk suggests. Canada has been named the country most likely to banish the banknote in exchange for electronic payments.”
Merchants who are plastic-friendly are well aware of the benefits. “I never have to turn my customers away,” commented one of our esteemed clients recently, “Before (I accepted credit and debit) I would have to apologize to customers who wanted to use their cards. I knew that by turning them away, they wouldn’t be coming back. Now when customers come into my store, they end up coming back over and over again.”
Here are five reasons your customers prefer paying with credit cards:
1. They get cash back.
Many credit cards offer customers the ability to earn money back for all of the spending they do. As a result, such cards provide customers with feelings that their purchases are more valuable. They practically save money with every swipe of the card knowing that they are earning something in return. The cash back feature allows cardholders to get their hands on free items when enough cash is accumulated.
2. They can get free trips.
It is widely known that many credit cards provide their users with travel rewards. It is not uncommon for people to book airline tickets, hotel stays and car rentals using the points they have accumulated on their credit cards. With such plans in place, it gives consumers all the more reason to use their cards. Paying with cash, quite clearly, won’t get anyone closer to a free trip!
3. They build their credit scores.
In order to make major purchases such as a car or a home, one needs to establish a strong credit rating. For many people, credit cards represent their first forays into the credit-building world. As long as they are paying their balances or minimum due payments on time every month, they will be improving their credit scores. Without credit cards, maintaining good credit is a lot more difficult.
4. They can do balance transfers.
Having multiple credit cards allows for consumers to get a little more flexibility with how they make payments. For example, if one card has a balance that is accruing interest over time, it can be transferred to another account with a lower interest rate. Naturally, a cardholder would require more than one account to take advantage of this benefit. It just goes to show how many additional options your customers have when they’re able to pay with credit.
5. They get “mini loans”.
When shoppers pay for their purchases with credit cards, they get additional time to pay off the charges. The payments are actually being made by the credit card company. The consumers’ actual money hasn’t yet been spent. This makes it so that large purchases aren’t always out of reach. Naturally, credit card bills must eventually be paid. However, the additional time given the shoppers is equivalent to getting interest-free loans. That is, as long as the balances are paid in full by their due dates.
At Divvia, we offer many great payment terminals that allow Canadian merchants to accept credit cards! 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!