Cash only accounts for 20% of all transactions and the average person only keeps $67 on them at any given time. When asked, 32% of respondents to a Federal Reserve Bank of San Francisco survey said they prefer to use a credit card as their primary form of payment. You may be considering accepting credit cards as a form of payment for your business. No matter the type of business you are involved in, accepting credit cards can increase sales and generally produce positive results for the business. Below are eight benefits of accepting credit cards as a payment option:
Credit Cards Legitimize the Business
Taking credit card payments will establish your business in the industry as legitimate. Displaying the logos of the credit cards you accept on your website or cash register will grab the cardholder’s attention and make them more likely to trust your business. Providing both current and prospective clients with more options in terms of credit card payments will please them and make them satisfied with your business, which in essence will improve your placement in the market. Therefore, accepting credit cards will increase your business’ level of legitimacy and instill rapport and trust with your customers.
Accepting Credit Cards Can Boost Sales
Cash-only operations will hinder business sales and potentially make the business lose hundreds of prospective customers. However, when a business accepts credit card payments, its potential customer base expands massively as more customers are attracted, thereby likely boosting sales.
Cards Can Eliminate the Risk of Getting Bad Checks
Accepting credit card payments practically eliminates any risk of having to deal with matters that revolve around receiving a bad or bounced check. You will not have to risk a huge chunk of your money on bad checks or wasting time having to track down the customer to properly pay for the goods or services.
Credit Card Payments Can Improve Your Business’ Cash Flow
In most cases, credit card transactions are electronically processed and can be settled quickly. The proceeds are deposited in your business bank account by the processor within a matter of days. This will not only increase and improve your cash flow but will eliminate issues with checks, billing, and invoice collection from your customers.
Put Your Business On a Level Playing Field With Competitors By Accepting Credit Cards
It is true that a business may lag behind the competition if it does not accept credit card payments, especially when competitors are. To survive, a business should accept credit card payments, which will obviously bring it to a level playing field with other competitors in the market.
Credit Cards Are Reasonably Inexpensive to a Business
Many businesses, especially small businesses, may be worried about incorporating credit card payments thinking that they are expensive, which is not true. The credit card rates are so low that even the smallest business can afford to accept them. In any case, if your business is yet to accept credit card payments, these are just some of the reasons why you should consider incorporating it into your business. It is a great way of increasing sales and is important to other components of the business.
