As a small business owner, you’re probably familiar with the hassles of balancing prompt payment for goods/services with ensuring that customers remain loyal to your brand. These issues are common across almost all businesses. Whether you run a small home-based operation, retail store, boutique or an e-commerce website, a smooth cash flow is top priority.
The Changing Payment Method Scenario
The payment method landscape has altered dramatically over the last couple of decades. The introduction of new technologies and innovations, along with new consumer preferences has resulted in a highly dynamic and changing scenario. Studies have shown that the payment mode significantly affects purchasing behavior. The emergence of the Digital Native generation that has no memory of land-line telephones or going to the bank to cash a check is a phenomenon that business owners would do well to recognize.
Cash is one of the oldest payment methods and it exists in many sectors even today. However, safety, convenience and risk of fraud are an ever-present danger.
The use of checks became widespread in the 20th century and people began paying for big ticket items and services, fees, utilities charges, or regular purchases via check. Checks also provided a paper-trail for security and audit purposes. However, there is always a significant risk of the check not being honored due to insufficient funds, the inconvenience of carrying a checkbook, or delays in clearance. Banks have made credit available to selected clients in the form of credit cards, as have certain retail stores and companies.
With the advent of the Internet, electronic money transfers have been introduced and these are now linked with debit cards and credit cards as well as smartphone based payment methods. Additional technologies have been introduced in the past two decades like the use of wireless mobile devices, mobile wallets, chip cards, and near field communication (NFC).
Credit and Debit Card Payment: Benefits
- Credit cards are an easy, convenient, established and guaranteed line of credit.
- They’re reputable, trustworthy, convenient and safe.
- Customers can plan their purchases and strategize their financial planning with debit cards.
- There are various options like bank cards, travel, entertainment and proprietary cards.
- Smart cards are not linked to bank accounts but can be loaded with specific sums for specific purposes.
- Card payments are used for a range of purchases, big and small ticket buys, travel, dining, gifting, making regular payments, and online purchases.
For business owners:
The advantages of accepting credit card payments for business owners are vast:
- It broadens and deepens your customer base.
- You can anticipate customer needs and provide targeted goods and services.
- It boosts revenues, encourages big ticket spending as well as shopping for everyday items.
- It encourages impulse purchasing
- Card payments keep your business and brand image’s appearance legitimate, relevant, and modern
- It helps to improve the checkout experience.
- You can collect payments from anywhere using a range of technologies
- Accepting credit cards creates more integrated solutions that reduce your dependence on staff and other operations
For more information on how accepting credit and debit card payments can make it easier for you to get paid or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.