Many people assume starting a business is the toughest part. Often, it turns out that growing past a plateau can feel even harder. You have to acquire a new set of customers or upsell to the ones you already have. Perhaps the easiest way to do that is to start accepting credit cards. This may seem counterintuitive. After all, how can something so basic increase revenue by so much? There are many reasons that have been tested and scientifically proven. A notable one is what Duke University behavioral economist Dan Ariely has called the ‘pain of paying’.
Dan Ariely, who is perhaps best known as the author of the book Predictably Irrational, has conducted studies that prove that people spend more when they pay by credit card instead of with cash. Psychologically, passing the card through the machine doesn’t really feel like spending money. So you’ll swipe far larger amounts than you’d pay in cash. Mobile payments are even better. Using a smartphone payment app is almost like swiping on a favorite games or dating app. It’s more abstract, so you don’t quite feel the pinch.
Less pain, more pay
On this principle, card-carrying customers will buy more on average than they would have if they were paying cash, and the cumulative rise in income can significantly expand your bottom line. You can make the deal even sweeter by starting your own loyalty program based on credit cards. It’ll turn those one-off swipers into regular customers.
Additionally, when credit cards are used to pay, the cashier doesn’t have to work out the change, and the customer doesn’t have to spend time rifling through their purse or wallet looking for the right denomination. By shaving a few seconds or even minutes off each check-out, you can serve more customers in a shorter time. This means that your lines move quicker and you can squeeze in more sales each day, while avoiding losing customers who don’t have time to wait in line.
Not every business is interested in developing an online footprint. But having an online store lets you sell to customers in other states. Or even those in your neighborhood who don’t feel like getting dressed and going outside. Adding an online store won’t interfere with your in-store business, but it can bring in a whole new set of buyers. It doesn’t have to be difficult, or even expensive. You just need the right payment processor.
Some merchant processors will approve your account within a day, and with no application fee. They’ll set up your website for eCommerce, providing encrypted payment options, a free shopping cart, and programing for various card networks, all at no extra cost. They may also provide payment apps for your mobile phone, and electronic keypads so customers can swipe their cards all at no additional cost. You’ll be fully ready to do credit card business in just one business day!
For more information on accepting credit card payments to expand your business, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.