Credit cards are one of the most commonly used forms of payment, and currently, makeup about 21% of transactions. In today’s digital world, it’s hard to believe that many businesses still do not accept credit cards as a form of payment. When was the last time you wrote a check or paid for a nice dinner in cash? Below are four benefits of businesses accepting credit card transactions.
Boost Cash Flow
When you switch your business from cash only to accepting credit cards, you’re broadening your potential customer base. The percentage of people who solely use credit cards has risen drastically as opposed to cash users. In an age of money becoming increasingly digital, it’s essential to accommodate the customers who choose this route over a paper one. The more customers you can welcome, the more likely you are to boost sales and cash flow. Using a fully-integrated payment processing solution, payments typically occur 24-48 hours after purchase, reducing the time of transporting funds to the bank.
Accepting credit cards also encourages impulse buying, which increases sales. Shoppers like to be able to make transactions quickly and painlessly, which means no running to ATMs or writing out checks. Research has shown that customers spend more when using a credit card than when they’re using cash followed by debit cards as 27% percent of payments accepted.
Legitimize Your Business
If a cardholder already trusts the logo on their card, wouldn’t they trust the merchants who accept them? Displaying the logos of the credit cards you accept can attract customers with those cards already in their pockets, giving them a sense of trust in your business too. Accepting credit cards also helps level the playing field with your competition. If you want to stay profitable and competitive, you need to offer the same services as your competitors.
Convenient for Customers
There’s nothing customers love more than convenience. Who wants to go to the ATM every time you go shopping? Credit cards are incredibly convenient, but also offer your customers more choice, flexibility, and speed during transactions. Credit cards are not only easy to use, but many card companies offer cash-back, mileage, and various different awards whenever the card is used.
Setting Up to Accept Credit Cards is Relatively Inexpensive
Credit card processing might seem like it would be expensive and long to set up, but with all the advantages of increased cash flow and customer base, it’s a no brainer. Credit card processing rates are affordable, allowing even small to large businesses to accept credit cards. Many retailers find that the increase in sales often offsets the costs of processing the credit cards, making it an excellent form of return on investment.