Accepting credit and debit Cards will Increase Your Business
More Canadians are switching from paying with cash to credit or debit cards.
While retailers in Canada have to pay fees to offer this service, embracing the trend leads to increased overall revenues.
Consumers increasingly favour credit and debit cards versus cash because of the convenience.
In the taxi industry, drivers who resist this shift and discourage the use of such methods of payment aren’t doing their bottom lines any favours. In this environment, if you discourage convenience, the customer goes elsewhere.
Co-op Cab customer feedback:
I never have cash. If I take a cab in Toronto that doesn’t take visa or debit or prefers cash, I will call another company next time. I need to have confidence that I will be able to pay for my fare at the end of the ride without having to stop at an ATM on my dime.
This customer isn’t alone.
While nearly 40 per cent of transactions are completed with cash, electronic payments have increased almost 30 per cent in recent years.
The Ipsos Payment Methods Report showed that about one-in-three cardholders say they are heavy debit card users, using it more than cash and credit cards combined.
One-in-four customers use credit cards more than the other methods of payment combined. Only one-in-ten prefer to pay with cash.
The old adage, you’ve got to spend money to make money,’ is something to keep in mind the next time a customer requests debit or credit. While it might cost you five per cent today, choosing to discourage this growing method of payment will cost you much more in the long-run.