Why You Need to Accept Credit Card Payments to Compete
A large number of small businesses do not accept credit cards. Are they missing out? Customers prefer to have many payment methods available at their disposal, and some will skip stores altogether if they do not accept their preferred payment method. However, that’s not all. In this article we’re going to take a look at the many ways in which businesses miss out by not accepting credit cards.
Credit cards boost sales
A cash-only operation loses out on customers who are looking to generate reward points on their credit cards. Customers are also more likely to purchase items on impulse if they are buying with a card. In order for your business to have a strong bottom line, accepting credit cards is a must. Otherwise, you will lose customers to competitors who do accept them.
Credit cards are particularly important in the online realm. Customers strongly prefer the convenience of a card purchase over other methods of online payment. They are instantaneous, safe and easy to use. By accepting card payments online, you encourage customers to buy more from your business.
Credit cards increase your business’ perceived legitimacy
Accepting credit cards is a symbol of legitimacy. By simply displaying the MasterCard or Visa logo, you are already signaling that you are a serious business with higher status within your industry. A business that does not accept cards seems out of place in today’s competitive commercial world, and customers do take notice. Card transactions will ensure that you have a stronger placement within your market, and that you portray your company in the best light possible.
Credit cards help save time
Online businesses routinely have to deal with the hassle of clearing checks and money orders, which can take up to several weeks. With credit cards, this entire process is sidestepped, and your cash flow can receive a tremendous boost because of it. In a highly competitive industry, this can give you quite the edge–or help you catch up to competitors who are already using payment gateways and merchant accounts to process online transactions.
In the brick and mortar world, merchant account services remove the need to handle large amounts of cash. Cash needs to be counted, stored and secured, all of which take time and money. Credit card transactions on the other hand are transferred directly into your bank account.
Conclusion
Credit cards might or might not give you a leg up on the competition, but they will definitely help you catch up. In today’s world, a business without a merchant account that does not accept cards is at a significant disadvantage. Some businesses do shy away from taking the leap into the realm of credit card processing, but the benefits far outweigh the costs.
For more information on how credit cards can help your business stay competitive, or to open a merchant account, please call (888) 924-2743 or go to Charge.com.