Your Small Business Should Accept Credit Cards. Here’s Why.
Today, credit and debit cards have become the most preferred and popular modes of paying for goods or services.
What’s the Advantage of Card Payments for Consumers?
Customers love their plastic. If your online or brick-n-mortar store offers a cash/check-only payment facility, a customer will rarely take the trouble of looking for a cash machine. Not everyone carries large amounts of greenbacks or a checkbook in their purse or wallet. That’s when second thoughts make their appearance and the customer backs off, deciding that they don’t really want/need this product or service. Or they’ll move on to the store across the street that accepts cards. If a customer has ever abandoned a shopping cart at check-out because you don’t accept credit card payments, the solution is staring you in the face – it’s time to make the change.
Credit cards are like short-term loans. You can defer payment for up to 30 days and after that, you have additional benefits like being able to pay in installments, as interest accrues.
- They’re trustworthy, easy, convenient to carry, simple to use and globally accepted almost everywhere, regardless of time and place
- Provide confidence of being prepared for emergencies
- Promote gifting, big ticket purchases, impulse spending
- Card-holders can carry balance and credit
- Additional benefits like rewards, points, cashbacks, warranties on certain goods
- Fraud liability guarantee
Advantages for Small Businesses
Small business owners are sometimes initially reluctant to set up card payment facilities, typically because of misconceptions about the industry and misplaced fears of high upfront costs.
Easy, swift and convenient payment: You needn’t waste time and effort on chasing outstanding payments, waiting for checks to clear or getting stuck with a bad check.
Safety: When a business decides to remain cash-only, this carries its own risks. Storing and managing cash attracts criminals. It can also be a source of temptation for staff. Banking the daily take is a hassle that no one wants, while tallying accounts every day can become a tedious chore. With credit cards, you get an automated transaction history and regular reports.
Data analysis: Tracking and analysis are part of the credit card processing company’s portfolio. You get a better insight into customer profile, purchasing behavior, and product popularity.
Higher purchase volumes and frequency: Studies conducted by Intuit show that 83% of businesses that began accepting credit card payments saw a significant boost in sales and revenues.
Better reach: Credit cardholders may be local, national or international consumers. Whether you conduct in-store sales, online sales, or both, accepting credit cards helps to net a variety of customers. Tourists, business travelers, regular local customers, impulse buyers, big ticket purchasers and more.
Competitive and relevant: With the average American possessing at least three cards, it’s clear that offering card payment options keeps your business profile competitive, modern and relevant. If you have an online presence, card payments are a necessity.
Cash-flow management: Card payments are deposited almost immediately into your account. Forget about waiting endlessly for checks to clear or the risk of delayed payments. This enables better control of cash flow, helps in planning and strategy and enhances the health and growth of your business.
For more information on why your small business may wish to consider accepting credit card payment, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.