Credit boom in Barbados

BUSINESSES ARE REPORTING a significant increase in debit and credit card use for customers’ purchases, as strict measures remain in place for the acceptance of cheques.

More customers have apparently been flashing plastic in supermarkets and petrol stations. Managing director of Super Centre Limited, David Neilands, and manager of Texaco’s Kendal Hill, Christ Church operation,

Osmond Crichton, said there was a greater use of debit and credit cards in their business.

Crichton reported a rise in usage of about ten or 12 per cent from around the last quarter of 2010.

Neilands said that 35 to 40 per cent of payment across the Super Centre chain now comes via debit and credit cards. Both leaders spoke of the need to put measures in place to protect the establishments from bad cheques.

Neilands told the WEEKEND NATION they insisted that people writing cheques produce their identification cards.

“Where I think we have difficulty in business is where people have cheque books with business names that are not necessarily incorporated or recognised businesses . . . ,” he said.

“Then you have no means of traceability if you accept a cheque.

“So we’re looking at the possibility of how we will tighten that up to ensure that any cheque given should be presented with an ID. The dilemma is with cheques that you’re really not sure who the originator is.” Neilands said Super Centre would not be going the way of some establishments in North America, refusing customers’ payment by cheque.

“We are stipulating that you must submit an ID with your cheque and we also ask people to submit an ID with their credit card – and people get upset.”

These moves are to help safeguard against ID fraud and protect the customer and the company, he explained.

He said there was a credit cheque list that staff operated by and “strict guidelines” about the dollar figure to accept without an override by a manager.

“What we would really like to have is an online database which allows a cashier to be able to see on a screen whether someone is a good or bad credit risk,” he admitted.

Crichton said one of Texaco’s concerns was having to “run down” customers to collect money.

“We try to manage it real tight because we have to pay cash for the gasoline and then we have to run down the people to collect the money,” he admitted.

With regard to the acceptance of cheques, Crichton said the business operated from a list.

“You’re on the list and that’s who we take cheques from,” he said. “Obviously, if you want to go on the list you have to seek permission.

“Now . . . if we get a returned cheque, you come off of the list.”