If you’re still not accepting credit or debit cards at your small business, we think it’s high time you entered the 21st century.
A recent online study by Nielsen found that more than half of consumers worldwide use credit cards for shopping, entertainment and dining, and 43 percent use debit cards. While 80 percent of those surveyed say they use cash, credit cards are quickly gaining ground. As for the humble check, only 10 percent of responders said they broke out the checkbook to make purchases.
If that doesn’t sway you — here are 7 more surprising benefits of credit card processing:
1. More impulse buys: An article from Psychology Today said that for most consumers, paying with a credit card is less painful than paying with cash and leads to more impulse buys. Two studies on how payment type affected grocery store purchases found that people who paid with a credit or debit cards versus cash were more likely to purchase high-calorie, high-fat foods like cookies and candy on impulse. Plus, people tend to buy higher quantities of goods when they’re using a card versus cash — which means more profits for you.
2. Quicker cash: Instead of waiting the days or weeks necessary for a money order or check to clear, credit card processing happens immediately, giving your business much-needed cash flow when you need it.
3. Happier customers: Avoid that two-second look of frustration customers make when they go to offer you a credit card to pay for a purchase and you tell them you can only accept cash. Sure, they might come back despite the inconvenience of not being able to use their preferred method of payment, but as they’re digging through their wallet for their last $20, they probably don’t have the best impression of your business. Keep your customers feeling good about their shopping experience by making the sales process as quick and painless as possible.
4. Easier sales: Remember how convenient it was to purchase your iGadget the last time you went into an Apple store. You didn’t even have to wait in line at a cash register — the Mac people rang you up wherever you happened to be standing. That’s the magic of mobile credit card processing. Accepting credit cards allows you to roam about your store and away from it (say to trade shows, expos and fairs), making it easier and more convenient for customers to buy your product.
5. More credibility: Acquiring the merchant account necessary to process credit and debit card transactions is not always an easy process, but going through it is reassuring to your customers that you’re running a legitimate business — particularly for those who are shopping online. Just seeing the credit card logos can put your customers at ease.
6. More customers: Accepting credit cards means you’re one step closer to being able to sell your products online. Selling online gives you access to a whole world of potential customers — and allows you to enter the global marketplace.
7. Increased security: Thieves target businesses that only accept cash because they know they’ll be plenty of it for the taking; virtual funds are a lot more difficult to steal.
Learn more about credit card processing on ResourceNation.com.
Photo courtesy of Stock.Xchng