In our last blog, we revisited the topic of credit card use in Canada. We pointed out that the many benefits of credit card use make your acceptance of credit cards something customers will thank you for. We highlighted rewards points, fraud protection and the ability to expense big budget items as top advantages for consumers.
Here are three more ways your acceptance of credit cards benefits your customers:
1. Credit cards help to pay down debt.
In some cases, credit cards are used by consumers to help them through tough times. Particularly large expenses can be hard to pay down. This is especially true when interest rates are high. Many credit card issuers offer balance transfer options that enable their customers to transfer balances into accounts with low interest rates. This works wonders in helping people to pay down their debts.
“When used strategically — like to take advantage of an introductory 0% APR for balance transfer offers — a credit card can actually help you pay off debt,” reports Jennifer Brozic on CreditKarma.com, “Many credit cards offer balance transfers with low or no interest for an introductory period. If you transfer high-interest debt and pay it off before the promotional period ends, you could save yourself a bundle on interest charges.”
2. Credit cards establish credit histories.
Most people know the extreme importance of having a strong credit score. By establishing good credit, a person is in a much better position to secure a mortgage for a new home or a purchase agreement for a new car. Major expenses often come with credit checks. For most people, credit is established by the simple act of using credit cards to pay for purchases and paying those balances to credit card issuers on time.
“If you’re trying to build a credit history or improve your credit, charging even a small amount on your credit card each month and making timely payments or paying off the statement balance each month can have a positive impact on your credit score,” informs TD Bank, “Using your debit card won’t affect your credit history, since the transaction is simply a withdrawal from your checking account, not a credit transaction.”
3. Credit cards provide mini-loans.
The way a credit card works dictates that mini-loans are offered its user. Simply put, a credit card enables a person to buy something now, but pay for it later. If it’s paid in full by the due date, the loan has been repaid interest-free. If the payment is extended passed the due date, interest accrues. However, as Brozic points out, some purchases can be financed without interest for longer periods of time.
“A card with an introductory 0% purchase APR can give you an opportunity to pay off a big purchase interest-free,” she notes, “If you’re confident you can pay off the balance in full and before the intro rate ends, using a credit card to finance a purchase may be a good option for you.”
Do you accept credit cards in your store?
At Unity Payments, we proudly offer Canadian merchants a variety of high-quality POS terminals to choose from. You can easily and securely accept credit card and debit card payments with the Newland 910, the Ingenico Desk 5000 or the Ingenico Move 5000. To learn all about your options, please don’t hesitate to call us at 1-800-661-3761. You may also email us at email@example.com.