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26/01/2010 -
It seems anecdotally true that people spend more when paying with credit or debit card versus cash. However, studies have shown that this is actually the case, making it a smart move for businesses to include debit and credit card processing in their merchant services.A Tuesday article in Psychology Today cited several studies, all of which demonstrated that consumers pay more when using credit or debit cards.
One study in particular, conducted by Drazen Prelec and Duncan Simester, asked participants how much they would be willing to pay for a desired basketball game ticket. Those told they would be paying by credit card were willing to pay more than twice as much, on average, as those who were told they would be paying with cash.
The article also cited a study that found that people are less likely to remember how much they paid for something when they used a credit card than when they paid with cash.
Other recent studies found similar effects with the use of gift cards.
Offering debit and credit card processing, these studies indicate, may be an easy way for businesses to boost their sales and bottom lines.
