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Why Accept Credit and Debit Cards?
By 2008, almost two-thirds (63%) of all consumer purchases will be made using credit, debit, and other forms of electronic payments—well over $7 trillion!1 Offering customers the option of paying with a card is no longer a luxury, it's a necessity.
Convenience
Of every $100 spent by consumers, nearly $40 is in a form other than cash or check.2 Offering the convenience of card acceptance can determine the difference between making a sale or losing out to a competitor who offers this service.
Impulse Purchases and Buying Power
The average sale amount for credit-card purchases is higher than cash.3 People don't always have enough cash when they're thinking about making a purchase, but a credit card can increase buying power and produce impulse purchases.
Debit Cards
Debit cards are growing faster than any other type of consumer payment, from 8% of all payments in 2002 to over 20% in 2007.4 Personal Identification Number (PIN)-based debit cards also reduce fraud and chargebacks.
- Used for everyday purchases instead of cash, checks, and other forms of payment.5
- Teenagers who might not ordinarily qualify for credit cards can easily make purchases.
PIN-based debit transactions offer additional benefits over signature-based debit.
- Reduced fraud
- Generally have lower processing fees
1. Visa U.S.A. 2005
2. 2004 Federal Reserve Payment Study
3. Visa U.S.A. 2005
4. Visa U.S.A. 2005
5. Nilson Report, 2003s
Increase Cash Flow
Credit card acceptance increases cash flow because the money is funded in 2 to 3 days whereas checks can take up to 7 days to clear.
