Thanks to the convenience and popularity of e-commerce, credit card usage is on the rise. Data released by the Federal Reserve in 2014 found that 72% of all American consumers have at least one credit card. That means approximately 167 million Americans own a credit card. These statistics show that if merchants want to compete in today’s tough economy, they need to make credit card processing an integral part of their business. Read on to learn some of the top reasons why consumers prefer using credit cards over cash.
The most common reason that consumers prefer credit cards over any other payment option is convenience. Whipping out a credit card is easier than paying with a check, safer than using a debit card, and much more convenient than running to the ATM because you are out of cash. Many consumers also use monthly credit card statements to track their spending and budget future expenses.
Who doesn’t love getting free stuff? With so many credit cards to choose from, many credit cards offer rewards and incentives to choose their card over competitors. Rewards including low interest, balance transfers, airline miles, hotel stays, points towards merchandise, and cash back are some of the most powerful incentives for consumers to use their credit cards. Although some rewards cards charge an annual fee, most credit card holders love the idea of getting paid to shop.
Credit cards offer consumers various forms of protection that aren’t available when paying with cash or any other payment option. The following are just some of the protective services that credit cards offer to consumers:
• Price protection: This service allows cardholders to recoup savings from the credit card company if a lower advertised price is found within 60 days of purchase.
• Extended return policies: This service can turn a 30-day return policy into a 90-day policy if the store won’t accept the return.
• Damage and theft protection: This service insures items against accidental damage or theft within the first 90 days after purchase.
• Extended warranties: This service can double the manufacturer’s warranty protection.
• Identity theft protection: This service alerts cardholders of suspicious purchase activity and can cover the cost of identity recovery services in the event of identity theft.
With all their incentives and protections, it’s no wonder that credit cards are so popular with consumers. Likewise, accepting plastic can only help merchants widen their revenue stream, make more sales, and reach a healthier bottom line. Learn more about opening a merchant account with Vision Payments today!