Seven reasons why your business should accept credit card payments
If your business is not yet accepting credit or debit cards, you might be missing out on more than you think. Here are seven reasons it might be time to expand your payment options.
Accepting cards means you get paid faster.
Payments from credit and debit card purchases are typically deposited within 48 hours of the transaction. Compare that to the time it takes to send out invoices and await payment, or for checks to clear. Card payments, in other words, help improve cash flow.
Cardholders typically spend more than people paying by cash or check.
According to Forbes, people spend more when they are not limited to the cash currently available in their wallet. In addition to making larger purchases, people paying by card are also more likely to make impulse purchases they may not otherwise make.
Your customers value the benefits card payments offer.
If you ask your customers what form of payment they prefer, most will choose cards. In addition to finding them safer and more convenient than other payment methods, many cardholders wish to take advantage of the airline miles, cash back or other reward programs their cards offer. When you give them that opportunity, you increase their satisfaction with your business.
You virtually eliminate the risk of bad checks.
When customers pay by debit card instead of check, funds are pulled directly from their accounts. If the money isn’t there, the transaction is declined. You no longer will be wasting time tracking down customers or money over bounced checks.
By accepting credit cards, you create a transaction history.
Some small businesses are so busy helping customers that they sometimes fail to track the products and services they are selling. With credit card transactions, you get an electronic record of this information, which can be helpful later if you want to conduct an analysis of holiday sales or other metrics.
Card payments are key to online sales.
If you would like to expand your business with a presence on the web, card acceptance is almost mandatory. The National Federation of Independent Business estimates that 90% of online purchases are made using credit cards. Your online competition is already accepting them, and you will need to do the same to compete .
Accepting cards is more affordable than you might think.
Some small or cash-only businesses worry that they can’t afford to accept card payments. The truth is, most businesses can no longer afford not to! Merchant service packages are available today for all sizes of companies. Plus, they add legitimacy to even the smallest businesses.
The truth is, the sales increase that most businesses experience after they start accepting card payments more than offsets their processing fees.
The bottom line: Accepting card payments is almost always a win-win for businesses and customers alike. Once businesses add card payment, they rarely, if ever look back.