Debit, Check or Cash?
The American Bankers Association recently published a whitepaper on the benefits of debit cards versus alternative methods of payment, titled “Debit Cards Cost Less, Provide More.” The paper discusses how debit cards are not only more time efficient in comparison to checks or cash, but save businesses money. While some may believe cash is a quicker method of payment than debit cards, businesses can process a debit card transaction faster than making change for a $20 bill.
According to the whitepaper, “Fast food restaurants such as McDonald’s see the benefits of debit cards: a customer can place an order, use their card and finish the transaction in less than five seconds. On the other hand, cash can take as long as 8 to 10 seconds.” When time is of the essence, each transaction affects the bottom line and a mere 8 to 10 seconds adds up for a business on a daily basis.
Other reasons merchants prefer debit cards? Consumers generally spend more money. Without the restriction of cash, a consumer can spend more money. The whitepaper goes onto cite, “In comparing debit sales to other payment methods, debit cards increase individual sales by as much as 20-30 percent at fast food restaurants and 10 percent at Big Box Discount stores.”
Are your members using debit cards more frequently than cash or checks? What do you think of the shift towards a cashless wallet? Let us know in the comments section below.