Why Accepting Credit Cards is Good for Small Businesses
Business size is driven by lots of different factors. Maybe you’re just starting out, with an eventual eye on growth. Or maybe you prefer the lifestyle afforded by your cozy boutique business. It might even be a hobby you’re running on the side that you want to keep manageable and untainted by “capitalist expansion.” Whatever the case, small businesses have to – by default – keep expenses low. They can’t afford to be extravagant.
This restriction could influence certain business decisions, such as inventory, of course, and also finance. You may opt for cash-only payments, because you don’t want the expense and hassle of dealing with checks, and you think you’re not large enough for credit cards. In reality, accepting credit cards is the best thing you can do for your business. How so?
If someone is walking by and wondering if your business is large enough to stock what they need, credit card signs psychologically lure them in. After all, a business that accepts cards is more likely to be big and well-established enough to have the obscure item they’re shopping for. Also, with majority of consumers preferring to pay by credit card, refusing to take their cards cuts off potential buyers.
More peace of mind
Small businesses are regularly targeted for opportunistic crimes, including the basic smash-and-grab. The assumption is that small business have low-level security and lots of cash in small denominations. By accepting credit cards, you have much less physical cash on the premises, so you become a less lucrative target. When thugs see the card symbols displayed on your door, they know they’ll have better luck elsewhere.
Less drama at the bank
As a small business, you might do bank runs about every day, or maybe just once a week, in order to avoid keeping cash on-site. You also have a lot of bookkeeping to do, to make sure your inventory and sales are reconciled. To accept credit cards, you have to form a partnership with a reliable payment processor. They process customer cards on your behalf, keeping records of every transaction, and forwarding cash to your account. So you’ll do far fewer bank runs and a lot less accounting. That way, you can just focus on running your business they way you want to.
Within your community, everybody knows and trusts you. But customers from outside are unlikely to have heard of your small business, meaning they’re less likely to trust it. Spotting credit-card-acceptance banners on your shop windows will help. Those signs position you as a reliable, established business, making it more likely for first-time customers to walk in and pay.
Even if you don’t really want to expand, you may want to take your business online in some small way. eCommerce can raise income while cutting expenses. That said, online buyers pay via credit card, bank-to-bank transfers, or phone payments. All these methods can be accomplished with your merchant account, making credit card acceptance an essential part of your digitization process.
For more information on why accepting credit cards is good for your small business, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.