This article explains twelve persuasive readers why a business should accept credit card payments. Each reason has to do with a benefit to the business owner, the customer, or both.
1. Most Common. Credit cards have become the most common form of payment. Becoming credit card enabled allows you to begin to get a piece of that enormous pie. It is estimated that eighty percent of all retain customers pay for transactions with either a credit or debit card.
2. It’s Easy. Accepting credit cards is not difficult: there is standard equipment, software, and procedures that are not difficult to implement and adapt to. Much of what takes place is automated, on the one hand, and behind the scenes as far as the merchant is concerned, on the other.
3. Increase Sales. Making it possible for consumers to use credit cards generally increases sales. This may result from several causes. First, their idea of what they can buy is not set by a fixed amount of cash or bank account balance, making it easier to give into impulse purchases, making many transactions larger than they would have been otherwise, increasing a business’s average sales. In fact, it is claimed that studies from PricewaterhouseCoopers have demonstrated that credit card orders can as much as triple cash and check transactions.
For eCommerce, merchants that require a check or money order to be mailed are few and far between, and that fact alone could make a potential customer look elsewhere.
4. Eliminate Trips to the Bank. Doing business means someone has to take the deposits to the bank, which can be a more or less risky business, depending on the amount of your deposit and your neighborhood. Even if credit cards don’t completely eliminate your trips to the bank, they may reduce them.
5. Avoid Bounced Checks. Many, if not most, merchant account providers offer a check payment guarantee or Electronic Check Conversion, which processes checks like credit cards. In either case, this diminishes risk from fraud and can allow check acceptance with less onerous procedures for customers and staff alike.
6. Customers Desired Payment Type. Customers appreciate being able to pay with their desired payment method, so making this possible by accepting credit card payments can increase customer satisfaction.
Customers are also looking for ways to earn whatever rewards are offered by their credit card company. Being forced to pay cash may mean that the transaction is costing them more because they’re forgoing whatever the benefit of using the card would have been.
It can also lead to an increase in credibility, as customers may perceive that a merchant who accepts credit has reached a certain threshold of customers and yearly sales.
7. Increase Check Out Speed. Swiping a card is faster than either writing a check or counting out cash, particularly if you have to search for a pen or hunt for an extra nickel. It also avoids the situation when customers select items that total more than the cash they happen to have with them. Cashiers will be spared the time counting out change, and customers will appreciate the faster moving checkout lines.
8. Reduce Chances of Theft. Less (or no) cash, reduces your business’s attraction to thieves.
9. Increased efficiency. Time spent counting cash, collating checks, and reconciling the cash drawers – these could be reduced or come close to being eliminated. If you are a mobile merchant, in any business related to home repair, kiosk or cart sales, transportation provider, or sell at conventions or trade shows—or if you wish you could be—being able to accept credit card payments could can allow you and your business to focus on the product or service you provide, rather than getting paid for it.
10. Keep Customers. The array of benefits to customers from accepting credit cards can lead to increased customer loyalty, providing repeat sales.
11. Improve Cash Flow. With credit card purchases clearing in one to four days according to many merchant account providers, cash flow can be improved over the time spent waiting for checks to clear on both in-person sales and invoices.
12. Cut Down on Overhead. Completing transactions on the spot eliminates sending bills and waiting for them to be paid, shortens time spent on dealing with cash and check payments, and may reduce insurance if cash on the premises is significantly decreased or eliminated.
“mobile merchants, including plumbers, carpenters, installers, on-site repairers, flea market/trade show merchants, tow truck operators, food delivery merchants, transportation/limousine services providers, and all other mobile merchants.”