According to a U.S. Bank survey, about half of Americans carry less cash nowadays. The reason is simple, more and more people prefer digital methods of payment. When you accept credit card payments from customers, not only do you attract the attention of a segment of the population that prefers cashless payment methods, you also get to enjoy several benefits.
Benefits of Accepting Credit Card Payments
Here are just a few of the reasons why you should seriously consider accepting credit card payments:
Convenient for Customers
The average American owns more than one credit card, and the primary reason for ownership is convenience. Swiping a card is just as quick as paying with cash, or faster, if the customer needs to count a bunch of bills and coins.
Improve Your Cash Flow
According to the SBA, only half of small businesses survive for at least five years. The reasons vary, but a whopping 82 percent fail because of cash flow problems.
Check deposits from customers usually mean a delay of several days before the amount gets credited to your account, while invoice payments can take 30 – 90 days to clear. Credit card transactions, on the other hand, can clear within one to three business days.
Encourage Impulse Purchases
Credit cards encourage impulse buying more than cash. Cash is real and tangible, and if you spend it, you have less of it. With credit cards, however, the customer can purchase a product or service now and worry about the expense the following month.
Also, because paying with a credit card is “less painful” than forking over a dollar bill, shoppers tend to purchase more.
Legitimize Your Business
Credit card acceptance adds legitimacy to your business. When customers see you accept credit card payments, the credibility of the banking institutions they trust rubs off on you. Make sure to display the logos of the credit cards you accept where your customers can see them: on your website, your storefront window and at the cash register.
Eliminate the Risk of Receiving a Bad Check
Accepting card payments relieves you of the time and financial burden associated with receiving bad checks. No more risking your money on a bounced check. No more chasing a customer for payments, either.
Essential if You’re Doing Business Online
If you sell goods or services online, you know that online payment systems are crucial to getting for your goods or services. Not accepting credit cards is, therefore, not an option.
Cost of Accepting Credit Cards
Credit card processing comes with varying costs, such as interchange rates, compliance factors, cancellations and other fees. The rates banks charge depend on a host of factors, including the estimated value of your credit card transactions and your assessment of risk for card fraud.
The fees, however, are reasonable overall, especially when compared to the cost of lost sales due to your inability to meet customer preferences. Plus, if you partner with credit card processing services like PaymentVision, you get the convenience of one platform for all your credit and debit card transactions.
Accept Credit Card Payments Online to Grow Your Business
With changes in technology come changing customer preferences, and businesses that can quickly adapt will find themselves in an advantageous position. Credit card payments are convenient and give customers the ability to purchase now and pay later, giving your sales numbers a significant boost in the process.
Call us today so we can show you how PaymentVision’s card processing solution can simplify credit card acceptance for your business.