More people are today signing up for credit cards and using them as the main mode of payment for almost everyday expenses. As a business owner, if you are not already accepting at least one type of credit card, you may be wondering if it is time to make a move. Truth is that, since more and consumers are embracing the use of credit cards, not accepting them means that you will be looking out a potential large clientele. However, the decision on whether to accept or not accept credit cards cannot be entirely based on that.
There are costs associated with the acceptance of these cards, and as a business owner you need to evaluate if the benefits are greater than the costs, read up at https://highrisk.solutions.
Some of the merits that come with accepting credit cards for your business include;
Improved Cash Flow
Besides being convenient for the shopper, credit cards also makes business operations more convenient for you. This is because the card company will directly deposit the funds into your account and thus you do not have to deal with anxiety of receiving bad checks , securing cash or even collecting invoices. Additionally, most credit card payments are done within a few days which is considerably fast when compared to checks.
Accepting credits means your buyers have more payment options and consequently increases your potential customer base. Additionally, it encourages impulse buying. Today’s consumers want things happening fast, and thus they would rather shop where they can quickly and easily complete a transaction. Writing checks or dashing to the ATM for cash is therefore not appealing and may push off customers to postpone or even forego making a purchase. More so, customers buy more as they cannot physically see the cash being exchanged, as opposed to cash transactions. A study established that consumers tend to spend 12 to 18% more when using credit cards rather than cash.
You Legitimize your Business
Having the logos of the different credit cards you accept at your checkout desk, gives customers a sense of trust in your business. If they trust the card brands enough to carry them, then that trust is easily transferable to the merchant accepting them. Gaining the trust of your clients will also come in handy if you plan to get into eCommerce, or if you are already into it. This is because cards are necessary for online transactions and also makes things easier for both the buyer and seller.
It is inexpensive, quick and easy to set up and use
The business of credit cards is currently highly competitive and thus companies have made the processing rates more affordable to allow more businesses and consumers use their cards. While there is a cost of accepting credit cards, merchants will often be able to offset these costs with the increased sales as a result of accepting the cards. At the end of the day, this makes a merchant account a good return on investment. Even more appealing is the fact that you have a merchant account set up and ready for use within 24 to 48 hours only.