In this day and age, the credit card has officially become one of the most popular forms of payment with consumers and businesses alike, providing more convenience than any other payment method.
It is unanimous that credit cards allow consumers much more flexibility and ability to increase their purchase power. When it comes to convenience, credit cards are easily portable and they don't need to carry bills upon bills of cash. Even though there is the possibility of credit card fraud, the credit card is still now the most preferred payment option of almost all merchants.
Mastercard and Visa now have programs in class to prevent fraud from happening, such as Verified by Visa and Mastercard Security. As long as you can prove that you didn't make the purchase, or the purchase was fraudulent, then you're likely to get your money back.
Reasons why some merchants prefer credit card payments
The biggest reason merchants love credit cards is that it allows the consumers and businesses to be part of the majority retail purchasing trend. By accepting credit card payments, merchants are inviting the patronage of all consumers rather than losing customers like those merchants who only accept cash.
Even though merchants have to pay fees and percentages to the credit card companies for the ability to accept credit card payments, the benefits and increase in sales makes up for the costs. The fees differ depending on the lender but they are usually not high enough to force merchants to not use their services.
Saves everyone time
We all know how annoying and irritating it is to wait in line at the register while you or someone else digs through their wallets and purses searching for dollar bills and coins to pay the cashier with. In addition to paying cash, writing a cheque is an even bigger waste of time. Why not make life easier and quicker with the credit card? With an easy swipe of the card and your signature on the receipt, the transaction is complete and you are on your way onto the next task in life.
Process more orders
It is because of the credit card that product sales over the telephone and Internet have become possible. Before the credit card, merchants would only be able to secure cash payments by requiring the customers to come directly to the retail location in person. This significantly limits traffic and exposure for the merchant. This plays into one of the most basic principles of business, more transactions equals more revenue which then turns into more profits.
Improved cash flow
Credit cards allow merchants to receive their funds much more quickly than having to wait for cheques to clear the bank. When processing a cheque, merchants have to continue operating without those funds which can prove to be problematic. Credit card payments are almost always processed immediately with the merchant receiving the funds in a very short amount of time.
By using credit cards, merchants are holding themselves up to a higher security level with more safety as well. Businesses become lesser targets to theft and robbery when they carry less cash on hand. On the flip side, merchants and consumers are much more able to keep track and log all the purchases and transactions. These usually come in online monthly statements but now every bank and credit card company allows their consumers to check their transactions online as well. This also results in less fraud attempts.
Compare credit cards with refund protection
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