Some people like prepaid credit cards and others prefer not to use them, but a recent study found that more consumers are turning to prepaid cards in recent years. Merchants and small businesses that don't offer payment processing machines may be missing out on the business they could find with shoppers carrying prepaid credit cards. Whether shoppers are going to continue using prepaid cards in the long run is unclear, but it is clear that credit and debit cards are here to stay. Optimizing the business for the latest consumer trends is beneficial and can bring about new sales opportunities for small businesses looking to grow in the coming months.
The Pew Health Group's Financial Security Portfolio report offered reasons for why consumers would use prepaid credit cards over other payment options. Participants in the study said prepaid cards didn't have any hidden fees that they had encountered with other cards used in the past. Along the same lines, prepaid credit cards helped them define and stick to a specific budget without getting stuck with other financial issues down the road. Additionally, people were rather hesitant to start a line of credit and they liked being "anonymous" as opposed to risking identity theft. There are many risks to using credit cards. However, not all people have resorted to prepaid credit cards and are still using and building credit.
Small businesses have to pay attention to how their consumer bases are purchasing products and how they want their shopping experiences to occur. There are many things to keep in mind, but payment processing options are the first thing to consider when trying to garner more sales and become a legitimate business. The way consumers shop is important for owners to take note of and remember when building a solid platform to grow the organization.
This article is for informational purposes only and it is not intended to provide you with any personalized financial, marketing, accounting or tax advice. Neither Moneris Solutions Corporation (Moneris) nor any of its affiliates shall be loable for any direct, indirect, incidental, consequential or punitive damages arising out of use of any of the information contained in this article. Neither Moneris nor any of its affiliates warrant or make any representation regarding the use or the results of the use of the information, content and materials contained in this article in terms of their correctness, accuracy, reliability or otherwise.
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Moneris processes more than 3 billion credit and debit card transactions a year, for over 350,000 merchant locations across North America. We have over 1,300 dedicated employees who understand transaction processing and know how to make it work for you.Follow on Twitter More Content by Moneris