Whether you own a retail store, are a webmaster or run a small business out of your home, accepting credit cards is a critical part of running a successful business. Accepting credit cards for payment reduces your business overhead and can greatly improve your cash flow. There are several advantages for business owners as well.
Here are 10 reasons why business owners need to accept credit cards:
If you’re running a small business, you want to afford your customers the convenience of using credit by being able to say we accept Visa/MasterCard. By offering extra convenience to your customers, you build up your professional image and show clients that you’re a serious enterprise.
2. Impulse Buying:
Merchants who are accepting credit cards, ATM/ debit cards, gift cards and checks are able to increase customer satisfaction and impulse buying. Accepting cards encourages customer purchasing and helps grow your business.
3. Increased average ticket size:
Customers who use credit cards spend 2-3 times more per purchase and buy more frequently than the average shopper. This can account for bigger profits for your business especially during the holiday seasons.
4. Competitive Edge:
If your competitors are accepting credit cards, make sure you are doing the same. You can effectively compete with other businesses in your industry and surrounding area. Customers will flock to where they can find convenience and flexibility.
5. Faster payment process:
In mere seconds a credit card transaction is authorized, checked for funds availability, and complete. The customer is out of the door in no time and the funds will hit the merchant’s bank account in 48 hours.
6. Preferred solution for online shopping:
How many times have you purchased something online using an online check or cash? You don’t or it’s very rare and you can’t. The preferred method is by credit card because of the instant authorization and convenience. An online check functions like a regular check, you still have to wait for the funds to clear before you receive your product.
7. Acquire international customers:
Accepting credit cards gives you the ability to attract orders from around the world. Card issuers and the internet have made it possible to do business internationally by utilizing currency exchanges.
8. Reduces Costs:
Accepting credit cards help make operating costs more efficient, guarantee payments, and reduce overhead by eliminating the need to send bills and manage account receivables. It is often less expensive to process credit and debit cards than to accept checks. Merchants are often concerned about how transaction fees and the discount rate of each transaction are paid to the merchant account provider and the impact it has on profitability of their business. However, the benefits of credit card acceptance far outweigh the fee expenditures.
9. Builds credibility:
By accepting credit cards, your business gains immediate credibility in the eyes of current and potential customers. This instantly will translate into increased customer loyalty.
10. Improves productivity:
With credit card processing, acceptance and settlement of transactions are conducted automatically. This allows a merchant’s funds from credit or debit transactions to be deposited directly to their bank account. This makes the payment process more efficient and less time consuming allowing a merchant to focus on other aspects of their business.
Accepting credit cards online or offline is vitally important for the growth of your business and profits. If you run a business without accepting credit cards, you could be turning a way a large number of potential customers. Remember, the costs are minimal when you consider how much increased business you can and will take in.
Melvin Pritchett is the creator of Merchant Ideas, a website dedicated to keeping you up-to-date with the latest tips and ideas for credit card processing, and merchant account services. His focus is built around educating business owners on the process of accepting credit cards and online marketing by teaching practical ideas for a competitive marketplace.