If you’re wondering whether credit or debit cards are more beneficial to use when out shopping and dining, there are a few questions to ask yourself. The first is simple. What kind of purchase are you making? If you’re buying something small with funds you have on hand, then you might do better to use your debit card, which will pay with money directly from a bank account. If you’re planning on making a large purchase, or several purchases in a day, then you might want to hold on to your cash funds for future expenses. In that case, charging the purchase to a credit card will allow you to make payments on the balance monthly until you have paid off the total.

Advantages to Using Credit Cards

Credit cards often offer rewards like cash back, bonus gift certificates, or travel miles. For savvy shoppers, these present an opportunity to reap benefits with little risk. Using the credit card for small purchases and then paying it off is a way of building up points without incurring extra fees.

Drawbacks to Credit Cards

There are some issues that can arise from using credit cards, and it’s good to consider them when deciding which payment method suits you.

  • Interest charges on unpaid balances each month
  • Some cards have annual fees
  • Spending limits
  • Not every card is accepted everywhere

Differences to the Merchant

Some merchants prefer debit card transactions because they are guaranteed transfers of funds that the customer has in an account, but the fact is that both types of transactions run on the same equipment. Modern point of sale software like the Clover POS System and integrated mobile solutions from providers like Revel Systems process both credit and debit transactions, making it just as convenient to pay with either option.

If you’re considering an upgrade to your business’s POS, you need to check out the options available from Merchant Account Solutions.

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