For the average consumer, credit cards are just a way of life. From swipes at the grocery store to utilities to debt repayments, credit cards are a routine part of life. For many people, credit cards have almost completely replaced cash as a mode of payment.
In fact, when you’re in consumer mode, you probably give your personal credit card quite the workout. But once you’re wearing your business hat, you may start to have reservations. After all, your business model doesn’t feel like it’s broken. For years, you’ve gotten by on cash and check payments, so why shake things up? The answer is that you should shake things up for the most basic reason of all – more profit.
Discover the power of credit
And the issue isn’t just lost sales. Research has shown people spend more using cards than they do when they pay cash. This means that by not accepting credit cards, you are likely to be losing money even on many of the sales you make.
One reason for this phenomenon is that credit cards let consumers access more cash than they physically have, because credit card limits are often up in the thousands or tens of thousands of dollars, and people rarely carry that much cash around. But there’s also a well-documented psychological reason. Using cash is painful, and comes with a distinct sense of loss, a phenomenon that researchers have called the “pain of paying.” Experiments have repeatedly found that it just turns out that people don’t experience that nearly as much with credit cards.
Loyalty through value-add
Everybody loves a bonus. So if customers know that they can earn extra points and loyalty discounts at your store, they’ll come by more often. This is easier to implement using credit cards than punch-cards or stickers. It’s easy to forget your store card at home, but if it’s the same card you’ll use for payment, then you’re sure to have it on you.
Credit cards will also open you up to a world of online customers who will now be able to order on your website. And the process of accepting cards doesn’t have to be expensive or time-consuming. Just sign up with a good payment processor, that has quick turnaround times, low rates, and lots of free features.
For more information on letting your business reap the benefits of accepting credit card payments, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.