Today almost 60% of US consumers prefer to use credit cards for their payments instead of cash, according to the Federal Reserve. However, despite this, around 55% of US small businesses do not accept credit cards. The question is why?
Even though processing credit cards has a lot of obvious benefits, business owners can be wary of implementing this capability for their business. There are fees to take into consideration, both upfront and during processing, and while this is so, the benefits of accepting credit cards outweigh the costs.
Accepting credit cards comes with many benefits, one of which is the widespread use of card payments. In fact, it is estimated that as little as 23% of POS (point of sale) transactions are made with cash. This means that the market of customers who prefer to use cash for purchases is shrinking, and that businesses who accept cash-only transactions are losing out. The other benefits include:
- Increased sales – credit card owners are more likely to buy on impulse, buy more, and buy more often.
- A better customer experience – it is estimated that 66% of customers prefer to purchase with credit and debit cards. Customers also benefit from reward systems by using credit cards, and they are more protected from fraud and erroneous charges if their cards fall into the wrong hands.
- Easier handling of finance – cash occupies physical space, and it must be safeguarded, counted and managed.
So if you choose to go with credit card processing, you will have access to a wider, better paying market, your customers will be happier, and you will be able to transfer resources from cash handling operations into other areas of your business.
For more information about the benefits of credit card processing, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.