Over 10 Years in Business Since 2001, Collective Point of Sale Solutions has been Canada’s Choice for payment processing services and secure point of sale solutions. We have served more than 11,000 businesses across Canada and processed more than $1 billion in debit and credit card transactions.
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Many customers use credit cards to get extended warranties
August 10, 2012 - 1:02pm
Credit card providers are always trying to think up ways to attract more customers. Bonuses, rewards and gas points have all been common sources of competition. More recently, many card companies have started a new strategy of allowing consumers to use credit cards to extend the warranties of purchased products.
For many shoppers, this was a big coup. When buying a big-ticket item such as a computer, TV or tablet, many consumers get anxious about the possibility of their recently purchased luxury item breaking early on in its lifecycle. However, extended warranties to protect about this eventuality can be costly.
This is where credit card companies come in. As a service to their clients, many of these providers offer to extend the warranty for no additional charge. Many credit cards - such as some of those from Visa, MasterCard and American Express - automatically tack on a year to the plan included by the store.
For consumers, this is obviously a valued perk, but what about for merchants?
Business owners should view this service as a boost for them as well. Credit card processing merchants may find that consumers looking to cash in on this peace-of-mind-granting benefit will only shop at stores that accept credit cards.
For this reason, it is crucial that stores - especially those that sell valuable technology items - feel comfortable in their payment processing equipment. Without the right tools, customers hoping to use their credit cards to receive extended security may decide to patronize a different merchant.
To avoid this situation, business owners may want to contact their merchant service providers to ensure that their pos terminals are in tip-top shape. As shoppers continue to look for the best deals and great service, it is imperative that shops have the most current, convenient and secure equipment in place to process transactions.