CASH STILL TOPS THE LIST
By Adnews Staff
U.S. retailers and consumers prefer cash to credit, according to a study by Ernst & Young of Toronto. Fifty-eight per cent of retailers prefer payment by cash, while private-label cards and debit cards are the second choices. The average cash purchase is $22(US) and the average credit purchase is $46(US). Forty-five per cent of consumers said they will use cash more frequently in the future. Eighty-five per cent of retailers think that accepting credit cards increases sales, but the majority of consumers claim that they do not let credit card acceptance dictate their choice of store. The study also found that retailers overestimate the impact of in-store signs and stickers on credit card choice, but underestimate the importance of interest rates, discounts and coupons. One in four retailers surveyed offer "cash-only" registers. Of theses, one quarter have seen an increase in cash sales. For the study, Ernst & Young surveyed a cross-section of major U.S. retailers about their credit and payment habits. It also polled 1,000 consumers regarding their payment habits and preferences.