How Will Accepting Credit Card Payments Help my Business?
If you’re still debating whether to accept credit card payments or not for your small business, you could be losing customers and missing opportunities. Perhaps you’ve been focused on developing your product, getting the marketing strategy in place and building a team. That’s all very important, but now it’s time to focus on revenue earning and ensuring that your business stays healthy and growing.
Credit cards are a staple feature in most purses and wallets today. The average American owns at least three cards, debit and/or credit. Surveys show that people with annual incomes higher than $75,000 prefer to use credit cards and they’re most often used to pay for online purchases, travel, dining out and at supermarkets and gas stations.
As a small business owner, make sure you ride the crest of this wave, not just to keep your business afloat but to watch your ship come in too.
There are several options available when you decide to accept credit cards, including:
- Open a merchant account with a bank
- Partner with an online merchant gateway
- Create an account with a payment processing company
- Mobile credit card processing
- Accept CNP (card-not-present) transactions via the Internet
Benefits for Small Businesses
Small business-owners are among the biggest beneficiaries of this method of accepting payments. Check and cash payments are on the decline and nine out of ten consumers prefer to have a variety of payment options. Credit card payments showed a 10% growth rate in popularity between 2015-2017. Business owners who plan a growth trajectory beyond their local areas are unlikely to succeed unless they offer the option to pay remotely by credit card.
The long-term benefits are undeniable:
- Convenience: Card payments are fast, simple and customer-friendly. They allow your customer to focus on purchasing and browsing rather than worrying about costs, where to find the nearest ATM cash machine or whether their check will be accepted.
- Sales boost: Studies report that businesses that accept card payments show an immediate jump in sales figures. It’s a fact that credit card holders also tend to make more big ticket purchases and impulse buys. Studies show that credit card users are more likely to buy, and that when they do they spend more when paying by card instead of cash.
- Trustworthiness: When you display the credit card brand logo in-store or on your website, it legitimizes your business. Customers already trust their credit card companies and this effect spills over on to your business too.
- Cash-flow management: Checks can take a couple of days to clear and cash has to be deposited into your bank-account. Or you may need to send out bills and wait for payment. Card payment provides almost instant deposit of funds into your account. This helps you to manage your cash-flow and plan your business strategies better.
- Meet customer expectations: If you run an online business, it’s nearly impossible to manage without card payments. This sector is booming, and if you aren’t providing your customers with card-payment facilities, they’ll likely move to someone who does.
The setup is swift and easy. Give your small business a leg up and watch it soar!
For more information on how accepting credit card payments will benefit your small business, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.