Canadians rank as the top country in the world in their movement toward being a cashless society. While this does not mean no one uses cash, it does mean that Canada has developed the infrastructure to allow its citizens to avoid using cash to pay for any goods or services they may need.
By 2015, in fact, only about 25% of payments in Canada were in cash. This makes payments much more convenient for customers and businesses alike. For retailers looking to improve their bottom lines, accepting card payments--both in person and online--makes running a business much simpler and more profitable.
Interac and Credit Card Fees vs Savings
In Canada, the Interac debit card network provides free access for consumers to pay directly from their bank accounts. This makes credit and debit transactions equally beneficial for Canadian consumers. In addition, credit card payment fees that retailers incur cannot be charged back to customers, allowing them to enjoy cash-free access to goods and services without any added financial burden.
All of these transactions, whether Interac or credit cards, charge fees to the merchants who accept them. Every time a business processes a card payment, in fact, a fee is charged. Given this, it may seem counter-intuitive for the merchants to want to accept them. In truth, though, businesses see their finances improve with card transactions. Not only does easier access allow for more payments, but it encourages customers to spend more on each transaction as well. The added revenue more than offsets the fees charged to merchants.
Further, the more sophisticated payment processing systems do more than accept payments. They provide accounting for every payment made, send fees automatically to the banks, and balance registers on an ongoing basis. Instead of relying on a person with a calculator, or just individually counting bills and coins, it creates consistent, error-free accounting, both on a per-transaction and per-day basis.
The accounting function in payment processing for Interac and credit card payments does more than make things easier. It saves a business on the cost of workers who might otherwise spend hours counting down registers, preparing deposits, and balancing the books. The more cashless transactions, and the fewer cash transactions, the better a retailer's overall financial picture.
Peace of Mind for Interac and Credit Cards
Even more important that the cost savings for merchants is the security that card payments provide. When a card payment is processed, the processing service receives and encrypts information from the purchaser's financial institution; facilitates communication between the merchant's institution and the purchaser's; and delivers the funds from one account to the other. In all of this, the processing system protects the information and the funds.
An Interac or credit card payment obviates the need for someone to carry cash funds for a deposit, and reduces the potential for either theft or user error. It protects both customers in-store and merchant employees, all while allowing for and delivering efficient payments.
Canada's work to make transitioning away from cash easier is rightfully seen as a boon to customers who want ease of access to their funds and secure payment options. But beyond the customers, these payment options help businesses improve their revenue and even save on costs in both stores and online locations. Working with an excellent payment processing service provider gives businesses flexibility, cost savings, and more efficient revenue streams.