17 Sep 7 Reasons Every Business Should Accept Credit Cards
Cash might be king, but accepting cards is a must in the age of plastic payment. According to a 2008 study done by First Data, electronic payments accounted for 63% of all in-store payments 37% of which are debit card purchases. We can only assume those percentages are even higher today based on the wide-scale use of credit cards. There is no question electronic payments are the prefered payment method among consumers, but running a credit card can be costly, so many merchants still opt not to. However, for most merchants the following 7 benefits far outweigh the cost of turning away customers:
1. Credit cards encourage purchasing
Running a credit card is simple and easy for both the consumer and merchant. In the time it takes to write a check, or count out cash and change, the customer is already in and out. The easier it is to make payment, the more likely a consumer is to pay.
2. Most customers don’t carry cash
Aside from people working in industries that pay in tips, most people just don’t carry cash with them anymore. Since most people are paid through check or direct deposit, the extra step and cost of going to an ATM just isn’t appealing. With a debit or credit card, money can be easily accessed. Writing a check for just about anything can seem nearly archaic, particularly with the ease of online and automatic bill payment.
3. People spend more with cards
As previously mentioned, paying with a card doesn’t seem as cumbersome or as big of a loss as doling out cash. This can hold especially true for large ticket items. Consumers are more likely to opt into that $1500 computer now and pay over time than write a check or pay in cash and take the immediate, large-sum hit.
4. Easier to track payments for consumers and merchants
Cash can go through your fingers quickly and quietly and checkbooks take diligence to balance, but cards keep records of purchases that are easy to track, reference, and categorize for both consumers and businesses.
5. Get paid now
As a merchant, when you accept a credit card money goes directly into your bank account. For retailers there are no drawer shortages, no need to count, write a deposit slip, or go to the bank to make deposits. Even Business to Business (B2B) companies where the merchants previously accepted payment through invoices are now turning to credit cards. There’s no waiting to get paid and no cost for collecting unpaid invoices or bounced checks. And the receiver of the goods or service gets the same convenience of an invoice with 30 day terms to make a payment before any fees are incurred. AdvoCharge can even integrate payments directly into Quickbooks making accounting even easier.
6. Credit card flexibility means a bigger audience
For companies selling online, accepting credit cards is a must! From the local casual purchaser to someone pursuing your wares internationally, credit card acceptance opens your business to more purchasing opportunities.
7. If you don’t, someone else will
If you turn down a customer at the register, what are the chances they will come back to your shop knowing that someone else will gladly accept their money? Some businesses have survived on this model, but how many purchases did they miss out on? How much more profitable could they have been? Remember also, it may seem like one customer at the time, but word of mouth is incredibly powerful. You may also lose the business of their friends, and in this day and age, to those who are researching your Yelp profile online before coming in. A mere “doesn’t accept credit cards” can turn a customer over to your competition before they even step through the door.