Holiday Spending on the Rise: Encouraging the Use of Cards
Analyzing the Upward Trend in Holiday Spending
We realize we’re not even into the actual “Twelve Days of Christmas” yet, but already holiday spending trends are being compiled and assessed. A recent survey from paymnts indicates that Holiday Spending out of Reach for Millions of Households This Year. According to the survey, “Visions of sugarplums could be the only thing millions of Americans can count on getting during the 2022 holidays, as new PYMNTS data has uncovered a painful insight into how inflation is eroding personal buying power.”
The Positive Outlook on Financial Progress
According to Linda Descano, Head of Content and Social, North America Marketing at Citi, “It’s reassuring to see spending on the rise, since the increase in Americans’ holiday budgets may indicate a more optimistic outlook towards making financial progress in 2014.”
Encouraging Card Use for Additional Benefits
Choosing the Right Credit Cards
At the same time this tentative optimism plays out, shoppers are also being told that using their cards, specifically, may have other advantages besides instilling a sense of optimism. An article on the CBS NY website says shoppers should “stay away from zero-percent offers linked to retailers. Instead look for zero-percent general purpose credit cards,” according to Card Hub CEO, Odysseas Papadimitriou.
Additional Perks of Using Credit Cards
The article also notes that “some plastic payment options offer other perks. American Express often doubles the manufacturers warranty on big-ticket electronics. Mastercard and VISA provide automatic rental insurance for car rentals.”
Credit vs. Debit: Weighing the Advantages
A similar article on the SurfKY website raises even more points in not only plastic’s favor, but credit’s in particular, when contrasted with debit cards: “ Cardholders can earn rewards. Paying in cash or with debit cards rarely earns shoppers any rewards. However, many credit card companies now reward responsible cardholders for using their credit cards. Some cards allow cardholders to get a percentage of cash back on each of their purchases, figures that can add up to a significant amount of money over time,” and goes on to mention additional fraud and insurance protections.
Encouraging Customer Loyalty and Optimism
Of course, you’re free to offer your own rewards to customers for spending with you — loyalty cards, for example — whether that plastic is credit or debit. And you can help kindle this newfound consumer optimism by making it as easy as possible for your customers to buy from you, regardless of how they want to pay, from mobile payments to online checks and more.
Get in Touch for More Information
Get hold of your AVPS rep for more information today! After all, you don’t want to wait ’til Christmas…!
