 from the experts


Accepting Credit Cards Offers Rewards As Well As Risks


Consumers prefer plastic, but merchants must contend with fees, possible fraud PROVIDED BY XCHARGE PAYMENT PROCESSING


people hold credit cards, representing a collective purchase volume of $2.1 trillion. While accepting credit cards offers considerable benefits — including the likelihood that consumers will spend more — it also presents costs and risks that retailers must understand and take into consideration.


A The Benefits: Bigger Purchases, 48 Mobile Electronics  May—June 2013


ccepting credit cards is a must for any merchant in today’s economy. In the United States, more than 180 million


Greater Credibility Though it has not been proven conclusively, some studies indicate that consumers spend more when they’re using credit cards than they would if they were shopping with cash. One study con- ducted at MIT and published by Carnegie Mellon Magazine indicated that individ- uals spend 12 percent to 18 percent less when paying with cash rather than credit. Another study done by McDonald’s found that customers on average spend 47 per- cent more when using credit. If consumers do, in fact, spend more


when paying with credit, one reason likely is convenience; paying with credit cards is a simple process. Many consum- ers are not willing to carry large sums of cash in order to make purchases. Those who do shop with cash must plan the purchase in advance and make an extra trip to the bank or ATM, making impulse purchases less likely. With cards, approval for spur-of-the-moment purchases can be received within seconds; if your point- of-sale software integrates with your merchant account, then it can make the process even quicker.


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