Shoppers and customers may be shocked to learn that nearly 55% of small businesses in the United States don’t accept credit card payments. This can impact customer behavior and also cause frustration and disappointment in consumers.
Many small business owners shy away from offering this facility because they feel that credit card processing charges could bite into profits. Every business, whether small or large, is unique, and small businesses aren’t a homogeneous group. However, small businesses can be just as capable of getting the best competitive credit card processing rates as larger players in the market.
Benefits of Accepting Credit Card Payments
Cash and check payments are fading into the sunset. A Federal Reserve study finds cash to be the most frequently only for transactions under $10. Credit cards and debit cards are much more common for bigger ticket purchases, and for online purchases of any size. People use different payment methods for different purposes and at different times and locations.
Payment preferences are in the range of:
- Debit cards: 42%
- Credit cards: 29%
- Cash: 24%
- Check and Others: 4%
- Prepaid: 1%
Benefits of accepting credit cards and debit cards:
- Gives relevance, competitiveness, modernity and legitimacy to your business
- Enhances your brand value
- Boosts customer trust, convenience, ease of payment, brand loyalty
- Reaches a larger pool of customers: locals, national and international tourists, business travelers, online shoppers
- Encourages big ticket purchases and impulse buying
- Provides customers with potential benefits, such as discounts, club-offers, seasonal and festival offers, rewards, points and cashbacks
Finding The Right Card Processing Company
This is a huge factor that can determine the health and growth trajectory of your small business. Partnering with a supportive, proactive, understanding card processing company is crucial.
- Analyze your unique business needs, preferences and budget.
- Work out what matters most: tech support, customer service, simple processing, affordable fees, software compatibility, or some other factor.
- Think ahead: As your business grows, you may need better infrastructure and support.
- Shop around for the best rates. This is a highly competitive sector and if you’re realistic about your transactions/volume, you can leverage better rates .
- Opt for month-on-month terms rather than getting locked into long-term contracts
- Select interchange-plus pricing rather than tiered pricing if available.
- Look for hidden charges/fees that could kick in somewhere down the line, months or even years later
- Ensure that the processor can be set up to accept payments in different ways: mobile, online, and on-the-go
- Customer service, data protection, marketing support, and breach protection assistance are vital for security and safety
For more information on what to look for in credit card processing for small businesses, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.