There are numerous reasons why credit cards are preferred over debit cards. With Swipe4Free, processing credit and debit cards are much more affordable.
Credit and debit cards have been in individuals’ wallets and pocketbooks for decades, but the former mode of payment is older than the latter. With a credit card, an individual can make a purchase using the card issuer’s money. The cardholder will have to pay this money back within 15 to 45 days, or else they’ll start paying interest on the outstanding balance.
A debit card, on the other hand, is linked to a bank account. When one spends with a debit card, the amount spent is immediately deducted from their bank account. While both modes of payment are effective and useful, credit cards reign superior.
Credit Cards Offer Attractive Bonuses & Rewards
If you spend with a credit card, you can take advantage of numerous benefits, including one-time bonuses, cash-back, rewards points, and travel miles. Debit cards, on the other hand, do not offer such incentives. When you use a credit card to purchase products and services—and you get a bonus or cash-back for doing so—you spend less, as the bonus money or cash-back can be automatically used to cover purchases, either entirely or in part.
But cash isn’t the only reward cardholders can receive. There are also cards that utilize points systems, and a cardholder can spend gained points on travel, gift cards, and merchandise. Then there are cards that offer free travel miles as a reward for spending, and once a cardholder saves up enough of these, they can use them to cover the cost of airfare, hotels, etc.