In our last blog, we took a look at three major reasons your customers prefer to pay for their purchases with credit cards. We listed the building of credit scores, the ability to track spending and the opportunity to stay safe from theft as those reasons. Of course, those are far from the only reasons the majority of consumers pay with credit. In today’s blog, we’ll take a deeper look into why consumers much prefer this method of payment.
They offer purchase protection.
What happens when you pay for a purchase with cash and the item is lost or stolen? For the most part, nothing can be done about it. You really have no recourse when it comes to replacing your purchase. However, when you pay for a purchase with a credit card, it offers you purchase protection. In many cases, that means getting a refund or a replacement. As well, many credit cards offer warranties to protect your purchases from malfunction or damage.
“If you buy an item with a credit card and later find out it’s damaged or the quality is poor, you can return the item and get the charge removed,” informs Amy Bergen on MoneyUnder30.com, “Credit cards may offer extended warranties on electronics, furniture, and other items you hope to use for a long time. In many cases the card doubles the time on the manufacturer’s warranty. Make sure to keep your receipts!”
They offer rewards.
One of the top benefits of using a credit card is the additional perks it offers you. When you pay for a purchase with cash, you get the item or service you purchased. That’s it. With many credit cards, you earn points for the amount you have spent. Those points often turn into such rewards as airline tickets, car rentals and hotel stays.
“I have taken two round-trip flights to Florida free with one of my cards,” reveals Sandra Quadros Bowles for Hanscom Federal Credit Union, “Rewards cards can pay you back in airline miles, gasoline or cash, to name a few possibilities. You earn your rewards based on your spending, so if you pay your balance in full, the rewards won’t cost you anything.”
They protect you against fraud.
Let’s say you lose your credit card and someone else manages to use it to make purchases. Are you liable for those purchases? As you’re likely aware, the answer is “no”. Credit card companies do great jobs in protecting their cardholders against fraud. As Bergen points out, even if the individual fraudulently using your card starts making purchases on your card right away, you won’t lose much money since charges to credit cards aren’t withdrawn immediately.
“Once you notify the card company of the theft, they’ll put a hold on your card and investigate,” she reports, “You aren’t liable for any fraudulent purchases made in the meantime. Federal law protections for credit card holders keep you from losing much cash. The most you’ll potentially be liable for is $50. And if you report before a purchase is made, or if your credit card company has a zero-liability fraud policy, you won’t lose anything.”
Do you accept credit cards in your store?
At Unity Payments, we believe that the easiest and most convenient way for merchants to accept credit cards is with the Poynt Smart Terminal. To learn more, please don’t hesitate to call us at 1-800-661-3761. You may also email us at info@unitypayments.ca.
